Ether (ETH) feels the instability of its position.

On the weekly timeframe, it can be seen that starting in July, ETH follows an increasing support line. The last time in October 2023, the price bounced off this trend line, after which the growth accelerated.

This uptrend led to a breakout of the horizontal zone in November. With the exception of the correction in April, this zone played the role of both support and resistance over the next 1000 days.

After a successful breakout, ETH peaked on January 11, when its price reached $2,717. However, since then, the price has fallen and is currently forming a bearish candle on the weekly timeframe.

The Relative Strength Index (RSI) on the weekly chart gives bearish signals, showing bearish divergence and decline. This happens when a price increase is accompanied by a decrease in strength, which often leads to a trend change.

Analysts' opinions are divided. Some believe that ETH may initially fall in the short term, but then make a significant contribution to growth.

The daily chart also shows bearish signals. On January 23, the price broke through the ascending support line that had existed for 95 days, and the RSI index fell below the 50 level on the daily chart.

The current ETH price is trading within the horizontal support zone of $2,200. In case of a breakdown of this zone, the price may decrease by 11% to the level of 0.618 Fibonacci, which is $1980.

Despite the pessimistic forecasts, a strong rebound from the support level of $2,200 is likely, which could trigger a 7% increase in Ethereum to the level of an increasing trend line of $2,400.