Ethereum (ETH) is facing uncertainty as it hovers around $2,200. Despite several attempts, buyers have failed to reclaim higher territory. The market sentiment remains bearish as ETH faces selling pressure even after the US announced the Strategic Bitcoin Reserve.

As ETH approaches key support levels, analysts say the coming week will be crucial in determining the next direction. If buyers successfully defend key support levels, Ethereum could regain bullish momentum. Conversely, if key levels fail to hold, bearish pressure will continue to mount.

Analysts' Take

Analyst Carl Runefelt recently shared that Ethereum is breaking out of a descending triangle pattern, which is often a sign of a bullish breakout. If ETH maintains this trend, it could enter a higher resistance zone, with a key target above $2,500. However, Runefelt emphasized that confirmation is important, as the market continues to be volatile.

Hopes for Recovery

Ethereum has lost more than 50% of its value since late December, leaving investors concerned about the altcoin recovery this year. ETH has yet to regain momentum, leaving the altcoin market in the grip of a bearish trend. However, ETH is approaching key technical zones that will determine the future trend.

To confirm a bullish breakout, ETH needs to break above and sustain above $2,300. If successful, $2,500 could be the next target. However, if it fails to maintain, ETH is at risk of falling further.

ETH price struggling below $2,300 | Source: ETHUSDT chart on TradingView

Key Levels to Watch

Currently, Ethereum is trading above $2,000, a last line of defense for bulls. A break below this level could see ETH fall further, adding to the bearish sentiment in the market.

However, reclaiming $2,300 would be a key sign of recovery. If ETH breaks above and holds this level, it could open the door to $2,500. Until then, investors should keep a close eye on ETH’s movements.