Ethereum Price Slides to $2,250, Will $1,400 Be the Next Bounce Zone?

Key Insights:

• Ethereum RSI drops below 36 as price tests support near $2,250 on a rising bearish trend.
• Whale pulls 50,256 ETH from Binance, fueling speculation of an institutional dip buy.
• Analysts eye $1,570–$1,400 as key zone for potential bounce if sell-off continues.

Ethereum price fell sharply below $2,250 this week, reinforcing a bearish trend that has gained momentum since early June. At the time of writing, ETH price traded near $2,253, down over 15% in seven days. Analysts currently indicate the critical area of breakdown where they may see a bounce between $1,570 to $1,400 should the downward pressure continue. Meanwhile, major on-chain movements suggest whales may be accumulating ETH in anticipation of a bottom.

Ethereum Price Breaks Down as RSI Signals Oversold

Bearish momentum increased after Ethereum failed to sustain above $2,400. According to CryptonautX, the price breakdown is now confirmed, with a sharp decline pushing ETH price into oversold territory. The daily Relative Strength Index is already close to 36, indicating that there is an increasing risk of short-term rebound due to exhaustion.

The analyst identified the main bouncing zone of $1,570 to $1,400. The range correlates with previous support areas in March and September 2023, providing structural confluence. They added, ETH price is seeking equilibrium, implying that equilibrium levels may soon be formed at these levels before any prolonged recovery.

Technical indicators reinforce the trend. The MACD on the daily chart indicated a bearish crossover, and the 50-day moving average crossed below the 200-day moving average, making a classic bearish indicator.

More so, Bollinger bands are also closing in, which accompanies severe fluctuations in prices. ETH price action has touched the lower band, and a decisive move seems impending.

Whale Moves 50,256 ETH From Binance

As the market sold off, Lookonchain data flagged unusual activity involving a new wallet address (0x3952) that withdrew 50,256 ETH (valued at over $112.9 million) from Binance. These purchases were made in installments of 3,000 ETH over a number of hours, which implies methodical acquisition in times of market uncertainty.

This has led to rumors that the dip is being purchased by institutional investors or high-net-worth individuals. Such massive sell-offs are historically followed by trend reversal episodes or a consolidation period. Though motives remain speculative, the withdrawal’s timing coincides with ETH price entering the oversold RSI zone.

More whale activity over the next few days might push the support story further as long as accumulation persists. Analysts caution that whale accumulation alone does not guarantee price recovery, but it adds weight to the argument that Ethereum price may be near a local bottom.

Technical Patterns Suggest Deeper Targets

Consequently, analyst Man of Bitcoin believed the downtrend remains intact, with Ethereum price still working through a wave-(3) decline in the Elliott Wave sequence. He noted the invalidation area of this resistance to be between $2,281 and $2,387. Bearish pressure is likely to continue dominating until the level has been reclaimed.

According to the Fibonacci extension model developed by the analyst, there are potential targets between $1,700 and $1,400, which overlap with the bounce zone identified above. He noted that the break above the descending trendline would forecast a possible trend reversal, which has not yet been seen.

Ethereum price failure to break past key horizontal resistances since April continues to limit upside potential. Weekly candle patterns are also bearish, and recent green days have not seen the volume levels matching the selling intensity.

Ethereum Price Bottom Forming Near $1,950 to $2,000

Meanwhile, according to Tang, Ethereum price may be nearing a bottom. He noted that either the low is already in, or one final dip below $2,000 could complete the move. On his chart, he has a support line around the price of $1,950 that supports increasing on-chain activity.

Nevertheless, the inability to recover the $3,000 despite the interest in the institution has been disappointing to the investors. “Not even reaching $3K despite the bid would be beyond embarrassing,” he noted. The general direction continues to be uncertain, with some traders anticipating a sharp rebound and others fearing losing more before they can stabilize.

If ETH price finds strong buying interest between $1,570 and $1,400 and breaks back above $2,280, a mid-term recovery could emerge.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.