Ethereum Faces Crucial Test at $2,200 With Breakdown or Relief Rally Ahead

Key Insights:

• Ethereum risks further drop to $1,700–$1,800 if $2,200 support fails under continued whale selling.
• A 10%–15% rally is possible if Ethereum reclaims the $2,500 resistance level in the coming sessions.
• Over $2.5 billion liquidated in 24 hours as whale selling and ETF outflows intensify losses.

Ethereum has dropped below key support levels after a sharp sell-off and is now trading around $2,200. As of now, Ethereum is trading at $2,316.72, down 2.00% over the past 24 hours, according to live market data.

Ethereum Breaks Below $2,500 Amid Liquidation Spike

Ethereum recently lost its $2,500 support zone, which had held firm in recent weeks. This move triggered a flash crash, pushing the price below $2,400 and raising concerns across the crypto market. Crypto trader TedPillows noted that the token is hovering around the $2,200 support zone, which was the accumulation range during the second quarter of 2025. 

The analyst suggests that reclaiming $2,500 could lead to a short-term recovery, adding that if ETH reclaims the $2,500 level, a 10%–15% relief rally will be next.” This could bring the price near $2,800 again, though no breakout has happened yet.

He added that if this level breaks, a dump towards $1,700–$1,800 will happen. The break below $2,500 also aligns with a pattern seen on higher timeframes. Trader Tardigrade commented on a 3-day chart, saying, “Ethereum is moving towards the target following the breakdown from this bear flag.”

Whale Selling and ETF Outflows Add Pressure

Analysts say that ETF outflows and whale selling are adding stress to the token’s price. A large number of long positions were liquidated during the recent drop, creating a long-squeeze that deepened the fall. ETH has fallen alongside broader market losses, with traders forced to close leveraged positions. 

With $2.5 billion in crypto liquidations in the last 24 hours, Ethereum’s price action is being closely watched by traders. Vlad reported that Ethereum’s drop to $2,360 came after a severe liquidity crunch, highlighting that Massive long-squeeze pressure and ETF outflows have broken key supports. 

With whale activity increasing, the pressure on the $2,200 level is growing. Traders are advised to monitor margin levels and market volatility, which remains elevated. Analysts are urging traders to keep an eye on volatility and risk management. With large holders still selling and broader market conditions unstable, Ethereum faces a critical point.