Ethereum, the world’s largest altcoin, is experiencing a divergence in its short-term and long-term prospects. Despite positive developments like the introduction of Ethereum Spot ETFs in the U.S, Ethereum has yet to reach new all-time highs. Over the past week, Ethereum has faced a 6.62% decline, prompting speculation of a potential extended downtrend as the cryptocurrency seeks stability before a potential rally.

Experts suggest that Ethereum might dip to the lower end of a falling wedge pattern, currently hovering around $2,200, where significant buying pressure is evident. Analyst Carl Runefelt’s chart analysis indicates that Ethereum is within a falling wedge pattern, often preceding a substantial rally following a period of decline. The key support level for Ethereum is identified around $2,200, where a rebound could trigger an 80.47% surge, potentially propelling the altcoin to $4,000 and beyond.

In addition, AMBCrypto’s analysis using IntoTheBlock’s In and Out of Money Around Price (IOMAP) tool reveals that the $2,200 zone is a critical area for buying pressure. The tool highlights a major support level at $2,218.93, where a significant amount of Ethereum is held in profit by addresses, potentially acting as a strong buying zone if Ethereum’s price drops to that level.

However, the IOMAP also suggests a possible reversal around $2,281, where a considerable number of buyers hold a combined total of 1.01 million ETH. Furthermore, Hyblock’s cumulative liquidation level delta indicates a bearish market trend, with more short positions compared to long positions.

AMBCrypto’s analysis points towards a potential further decline for Ethereum, supported by a notable drop in the OI-weighted funding rate, indicating that retail investors may be driving Ethereum’s price lower. If this trend continues, a decline to the $2,200 support zone becomes increasingly likely.

In conclusion, Ethereum’s short-term outlook suggests a potential decline towards the $2,200 support level, with significant buying pressure expected at that zone. Traders are advised to monitor these key levels closely as Ethereum navigates through its current price dynamics.