Key Points
- ETH could potentially dip to around $2,200 before a significant rally.
- A major support level for Ethereum is at $2,218.93, indicating strong buying pressure.
Despite favorable developments such as the introduction of an Ethereum Spot ETFs in the U.S, Ethereum has not yet reached new all-time highs.
Over the past week, the world’s largest altcoin, Ethereum, has seen a 6.62% decline.
Falling Wedge Pattern Indicates Potential Upswing
Crypto analyst Carl Runefelt predicts that this downtrend could continue, especially as Ethereum seeks some stability before a possible rally.
According to Runefelt’s daily chart analysis, Ethereum is currently trading within a falling wedge, a pattern often leading to a significant rally after a period of decline.
The key support level for Ethereum, according to the analyst, appears to be around $2,200, where substantial buying pressure can be observed.
If Ethereum rebounds from this support level, Runefelt believes it could see an 80.47% hike, potentially pushing the altcoin to $4,000.
Analysis Supports the Strength of the $2,200 Support Level
AMBCrypto conducted an analysis using IntoTheBlock’s In and Out of Money Around Price (IOMAP) tool, which identifies key support and resistance levels.
The analysis revealed that the $2,200 zone is a key area for buying pressure, with a major support level at $2,218.93, where over 1.59 million Ethereum is held in profit by addresses.
However, the analysis also suggested that Ethereum might not fall as low as $2,218.93, before reversing.
There’s a strong possibility of a reversal around $2,281, where over 2.17 million buyers hold a combined total of 1.01 million Ethereum.
Hyblock’s cumulative liquidation level delta revealed a negative delta, indicating a bearish market trend.
Further analysis by AMBCrypto suggested that Ethereum may be approaching a decline, supported by a notable drop in the OI-weighted funding rate.
This rate adjusts based on the asset’s Open Interest, indicating that retail investors are willing to drive Ethereum’s price lower.
If this decline continues, a fall to the $2,200 support zone will become increasingly likely.
