As Ethereum falls below $2,400 and trades under the 200-day EMA, technical analysis warns of a potential correction to $2,200.
With Bitcoin dropping back below the $103,000 mark, Ethereum is now trading at $2,400. As the broader market correction gains momentum, Ethereum faces the risk of a deeper decline toward the $2,200 level.
Ethereum Price Analysis
On the daily chart, Ethereum’s price action shows a bullish breakout from a falling channel pattern, completing a rounding bottom formation. The neckline of this bullish pattern aligns with the 50% Fibonacci retracement level near $2,700.
However, the failure to break above the neckline has triggered a pullback toward the 38.20% Fibonacci retracement level near $2,400. With an intraday drop of 3.74%, Ethereum is currently trading at $2,403, below the 200-day EMA.
After rebounding from a 24-hour low of $2,349, Ethereum is struggling to hold above the key Fibonacci support. The short-term pullback is also signaling a potential bearish crossover between the MACD and signal lines. If confirmed, this negative crossover could indicate a deeper correction, potentially invalidating the bullish pattern.
Meanwhile, the immediate support below the 38.20% Fibonacci level lies at the 100-day EMA, currently around $2,193, followed by the psychological support at $2,000.
On the bullish side, Ethereum could rally toward the $4,000 mark if the broader market stabilizes, based on the rounding bottom breakout pattern.
Analyst Spots Rising Whale Support for Ethereum
According to a recent tweet by crypto analyst Ted Pillows, ETH whale holdings have significantly increased over the past few weeks. Citing data from CryptoQuant, the analyst highlights that the balance held by addresses with 10,000 to 100,000 ETH has risen to 16.79 million ETH.
This increase represents a $1.25 billion surge in whale holdings over the past month. This highlights growing confidence among large investors in Ethereum’s long-term potential.
Specifically, Pillows stressed that the development is a bullish signal, saying, “My bags are ready.”
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