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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.”