$ETH is currently experiencing a period of extreme volatility, trading around $2,345 after a significant 20% drop over the last week.
The recent "dump" was triggered by a combination of factors: a broader market retreat as Bitcoin fell below $80k, massive liquidations of leveraged long positions, and a "risk-off" sentiment in global markets due to rising yields. Technically, ETH is trading below its 50-day and 100 hour moving averages, indicating a strong bearish trend. However, with the RSI sitting near 20 (oversold), the market is primed for a potential relief bounce as selling pressure reaches exhaustion near the critical $2,100 - $2,200 support zone.
For a minimum risk entry, the safest strategy is to wait for a confirmed floor. Buying near the current price carries "falling knife" risk, so look for entries close to the major psychological support of $2,200.
If this level holds, ETH could quickly rebound toward the $2,500 resistance level. Conversely, a daily close below $2,100 would signal a further crash toward $1,800, making a tight stop-loss essential. Investors should keep a close eye on Bitcoin's stability, as Ethereum is currently moving in high correlation with the broader market's movements.
Trading Strategy
Buy : $2,210 - $2,240
Sell : $2,480 - $2,520
Stop loss : $2,100
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