- Ethereum risks dropping to $2,000 if the $2,300 support level fails to hold.
- Analysts debate ETH’s next move as to whether it will decline or rebound to $2,900.
- Key catalysts like EIP-7702 and institutional interest could drive Ethereum higher.
Ethereum has entered a crucial phase in its price action, with technical analysis suggesting potential movement toward either the $2,000 or $2,900 levels. ETH is showing signs of downward pressure, having declined across multiple timeframes – 7.2% over the past week, 21.2% in the past month, and 20.3% year-to-date.
Currently, Ethereum is testing the $2,300 support level, which technical analysts warn could potentially function as a “buyer’s trap” – a price zone that appears to offer value but may lead to further downside if breached. If this support fails to hold, the next price target could be $2,000 to $1,500 range, corresponding with the monthly order block. This zone is a crucial area where the trend might finally find a reversal point.
On-chain data from Coinglass shows major liquidity clusters at key price levels, with approximately 36 million ETH positioned around the $2,000 mark and 33 million ETH near $2,900. These concentrations of orders can act as magnets for price action, potentially pulling Ethereum toward either level depending on which direction the market breaks.
The current technical setup suggests a bearish bias in the immediate term, with multiple timeframes showing consistent downward movement. However, analyst Ignas presents a contrasting bullish case based on fundamental developments within the Ethereum ecosystem.
Ignas highlighted several positive catalysts that could potentially drive upward momentum and explained that ETH is exhibiting the same performance as it did during April 2021. This includes leadership changes at the Ethereum Foundation and a strategic decision to scale the layer-1 network. The increase in gas limits is not just a technical adjustment but a philosophical shift in the development approach.
Related: ETH Struggles Post-Bybit Hack, Risks Falling Below $2,400
Other bullish factors include the introduction of Pectra bringing EIP-7702, which eliminates the need for token approvals. The new Open Intents Framework from the Ethereum Foundation aims to improve layer-2 user experience, potentially broadening adoption.
The analyst also notes a potential change in market sentiment as more traders seek coins with strong fundamentals like Ether rather than relying on hype-driven meemcoins. Institutional interest provides another potential tailwind, with Ethereum being positioned as the preferred blockchain for asset tokenization. Finally, Ignas points to the relative price decline as a potential opportunity.
