Ethereum’s recent price movements have caught the eyes of analysts and investors. After its very brief rally on May 13 up to $2,738, ETH corrected about 14% down to $2,350 on May 19. Going by the pullback, the altcoin seems to have carved out a $2,400 support level that is considered a “buy-the-dip” level by top crypto analysts like Michael van de Poppe.
Ethereum From $1,800 to $2,738 in 6 Days, Then a 14% Pullback
Ethereum saw a powerful rally as it surged 50% in just six days from $1,800 to $2,738. The rally was resisted at nearly $2,600, leading to a sharp correction during the weekend.
As per Coinglass data, The correction ran in tandem with another synthetic deleveraging event, which shaved off more than $667 million from crypto assets. More than $241 million were wiped off in leveraged positions in just about 12 hours, with the largest single liquidation order from an $8.21 million ETH-USDT trade on HTX.
Even after so much volatility, the price is still holding solidly above $2,400, cementing it as a significant support zone. Analysts are of the opinion that the level still garners dip buyers and can act as a springboard for the next big bullish leg.
Technical Analysis: Bullish Pennant Forms After Descending Channel Breakout
The charts show that Ethereum is breaking free from a descending channel, bringing forth the formation of a bullish pennant, being a strong indication of continuation. This pattern ordinarily arises from a major upward movement and proceeds into consolidation via a symmetrical triangle.
Adding to the positive outlook is the Relative Strength Index, which currently hovers above 60. This said level indicates that positive momentum is there, suggesting buyers may enter from the short end of the spectrum.
Assuming the bullish pennant formation is validated, then Ethereum will be able to launch into the 0.382 Fibonacci level at around $3,067. Further continuation of the bullish rally may act as a catalyst to thrust ETH prices into the $3,500–$4,000 realm which speaks of a level unseen since those days of the last crypto bull run.
Source: TradingView
What Happens If $2,400 Breaks? Bearish Scenario Still in Play
Given the favorable outlook, a note of caution for investors is necessary. If it does not maintain support near $2,400, then the selling pressure might increase. A decisive break below this level may send ETH toward $2,000 approximately, in conformity with the 0.786 Fibonacci retracement. Such a move would undermine short-term bullish momentum, and sentiment will swing toward the bears.
But given Ethereum’s strong fundamentals, upgrades on the horizon, and crucial role in the Web3 ecosystem, many consider this dip to be a great opportunity for accumulation rather than a reason to exit.
Why Analysts Are More Bullish on Ethereum Than Bitcoin
Specially, whereas Bitcoin is 5% below its all-time peak, Ethereum is still about 50% below its peak. This discrepancy has kept ETH more desirable on a risk-reward basis. Top analysts view Ethereum as having more room to run in the existing market cycle.
Michael van de Poppe echoed the same view, placing the ideal entry point for long-term investors at $2,400. In his view, Ethereum can expect a strong surge to $4,000, particularly if the overall market setup remains positive.
