Ethereum’s price retracement below $2,400 has sparked analyst debate, with some predicting a deeper correction to around $2,200 support before a potential rebound. Others point to underlying bullish indicators, including an oversold RSI and declining exchange holdings, suggesting possible upward momentum.
Ethereum’s price may retrace in the short term before giving traders a better opportunity to open long positions. Earlier this month, it seemed poised to reclaim $2,500, but the bears intercepted the move.
Currently, the asset trades at around $2,300. The analyst Ted claimed Ethereum is “looking weak” and cited its repeated rejection from the $2,400 resistance zone. He identified a major support zone around $2,200-$2,250.
Ted predicted that if Ethereum manages to reclaim the $2,400 level, it could tap the $2,470-$2,500 liquidity zone. Conversely, losing the $2,300 zone would likely lead to a quick retest of the $2,150-$2,200 support level. Another trader, Crypto Tony, stated they await a plunge to around $2,290 for a possible long position opening.
Contrary to the short-term skepticism, certain on-chain indicators suggest the bulls might regain control. Ethereum’s Relative Strength Index (RSI) has dropped to 30, indicating the asset has entered oversold territory. CryptoQuant’s data shows Ethereum stored on exchanges has tumbled to a nearly 10-year low of approximately 14.47 million, a development seen as bullish because it reduces immediate selling pressure.
Furthermore, institutional interest appears to be rising. According to SoSoValue, spot Ethereum ETFs have seen significant inflows lately, indicating that pension funds, hedge funds, and other large players are ramping up their exposure to the asset.
