Earlier this month, it appeared Ethereum (ETH) was set to retake $2,500, but bearish forces interrupted that advance.
Ethereum currently trades near $2,300, and some analysts warn a deeper correction may be imminent. At the same time, several on-chain indicators point to a potential bullish resurgence in the near term.
Is a Plunge Coming?
On X, analyst Ted described ETH as “looking weak” and noted that while Bitcoin reclaimed a key level, Ethereum has repeatedly been rejected at the $2,400 resistance area.
Ted highlighted a major support zone around $2,200–$2,250 and said a drop into that range would not be surprising before any meaningful rebound.
He has been watching ETH’s recent sideways action closely and called the current week “very crucial,” citing market uncertainty tied to ongoing diplomatic developments between the United States and Iran.
“If Ethereum manages to reclaim the $2,400 level, it’ll tap the $2,470–$2,500 liquidity. And if it loses the $2,300 zone, a retest of the $2,150–$2,200 support level will happen quickly,” he said.
Popular trader Crypto Tony, who has nearly 600,000 followers on X, also weighed in, saying he expects a drop to a support area around $2,290 that could present an opportunity to open a long position.
Indicators Point the Other Way
Despite the cautious forecasts, several technical and on-chain metrics suggest ETH may be poised for a rally. The Relative Strength Index (RSI) has fallen to about 30, which places Ethereum in oversold territory and increases the likelihood of an upward correction.
Another bullish sign is the falling amount of ETH held on centralized exchanges. Data from CryptoQuant shows exchange balances recently dropped to a near 10-year low of roughly 14.47 million ETH. Lower exchange reserves reduce immediate sell pressure and can support price appreciation.
Institutional demand is also returning. SoSoValue reports notable inflows into spot ETH ETFs recently, suggesting pension funds, hedge funds, and other large investors are increasing exposure. Those inflows require issuers to back ETF shares with actual Ethereum, which can tighten supply and provide upward support.
In summary, while some traders expect a corrective move toward the $2,200 range, oversold technical readings, dwindling exchange supplies, and renewed institutional inflows create conditions that could support a rebound. Market participants should monitor key levels around $2,300 and $2,400 closely to gauge whether bears or bulls will take control next.