Ethereum's $2,200 at Risk…Will Support Line Collapse?

▲ Ethereum (ETH), cryptocurrency decline/AI-generated image ©

Ethereum has come under pressure from a sharp cooling in the derivatives market and geopolitical risks, putting its $2,200 support line to the test.

According to cryptocurrency market aggregator CoinMarketCap on April 12 (local time), Ethereum (ETH) traded at $2,212.63, down 1.28% over the past 24 hours, showing weakness alongside Bitcoin's downward trend. During the same period, Bitcoin fell by 1.83%, and the total cryptocurrency market capitalization decreased by 1.55%, indicating a cooling phase across the overall market.

The primary cause of this decline is the contraction in the derivatives market. Total derivatives trading volume sharply dropped by 42.98% to $499.09 billion, and open interest also decreased, leading to a rapid reduction in leveraged positions. This signifies a significant weakening of speculative buying pressure in the market.

Technical factors also confirmed the pressure. Ethereum encountered resistance near the 38.2% Fibonacci retracement level of $2,214.50, halting its upward movement. While the Relative Strength Index (RSI) showed some short-term overheating signals, overall momentum has shifted to a neutral zone, indicating a slowdown in upward thrust.

Compounding this, geopolitical uncertainties surrounding negotiations between the U.S. and Iran have led investors to adopt a wait-and-see approach. The market continues to reduce risk exposure without finding a clear direction.

In the short term, the $2,162 support level is expected to act as a critical turning point. If this range is maintained, sideways consolidation could continue, but a breach could extend downward pressure to the low $2,000s. Conversely, an analysis suggests that a breakthrough above $2,280 could open up a rebound scenario.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*