Ethereum’s price is approaching a crucial resistance level at $2,200, a price point that has previously acted as a barrier to upward movement.

Currently, Ethereum is trading within a descending channel, a technical pattern typically linked to bearish trends. This suggests that there may be downward pressure on the cryptocurrency. If the price fails to break through the $2,200 resistance, analysts warn of a potential correction toward a key support level of $1,700, marking a decline of about 13%.

Moreover, the ETH/BTC pair is testing a significant support zone not seen since late 2020, creating a sense of anticipation for a possible reversal after a prolonged decline.

Technical indicators like the Moving Average Convergence Divergence (MACD) show signs of weakening bearish momentum, with the MACD line approaching a bullish crossover.

If confirmed, this could signal a potential price rebound. However, volume analysis has shown inconsistent trading activity, with lower participation during recent gains and increased volume during declines, signaling that buying pressure is declining.

While the outlook remains somewhat bearish due to the weakening momentum and technical formations, there is still a glimmer of hope. Some analysts, such as Patron, believe that Ethereum could rally if it manages to hold support around $1,980.

In this case, Ethereum could rise to $2,296 in the short term, marking an increase of over 15%. Further bullish targets include $2,913 and $4,000, contingent on Ethereum maintaining support and gaining buyer momentum. A sustained shift in momentum could challenge the current bearish trend, potentially reversing the market’s sentiment.

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