Ethereum, the second-largest cryptocurrency by market capitalization, is currently in a correction phase after reaching a peak of $3800. The price is hovering around $2260, and traders are wondering whether a recovery is on the horizon or if further declines are expected.
Current Situation of Ethereum Price
Ethereum is currently trading at $2262, recovering slightly from a drop to $2223. The price has been declining since reaching a local high of around $3800 in early June. This decline is attributed to overall weakness in the cryptocurrency market, concerns over ETF outflows, and Bitcoin's recent dip below $62000.
Chart Analysis and Technical Levels
The chart uses Heikin Ashi candles, which help visualize trends better. In recent days, consistent red candles indicate bearish momentum, with horizontal support levels at $2200, $2000, and $1700 marked. The current ETH price is testing the 0.618 Fibonacci level around $2250, historically a strong support zone.
Future Price Movements of Ethereum
Currently, the Relative Strength Index (RSI) stands at 34.98, indicating oversold conditions. If the RSI bounces and breaks above 40 while ETH price remains above $2250, it could trigger a short-term rally up to $2500–$2600. Immediate resistance levels are at $2300 and $2480, while key support zones are $2000 and $1700.
Ethereum is in a vulnerable technical position, with the current support at $2200 potentially determining future price movements. A breakdown below this level may lead to a sharp decline, while a strong bounce could push ETH price towards $2500.
