Ethereum Pulls Back to $2.3K—Traders See Dip as Buying Opportunity Before Next Leg Up

Ethereum’s 30% rally hits a speed bump as price corrects to $2,300—classic ’buy the rumor, sell the news’ behavior from paper-handed retail traders.

Why this isn’t the end: On-chain data shows whales accumulating at this level, while derivatives markets flash bullish divergence. The ’smart money’ isn’t sweating—yet.

Watch these levels: A hold above $2.2K keeps the uptrend intact. Break that, and even the most diamond-handed HODLers might start questioning their life choices.

Meanwhile, Wall Street analysts suddenly remember technical analysis exists—just in time to slap price targets on a market they’ve ignored for months. How convenient.

While short-term signals like the 10-day EMA and SMA are flashing red, Ethereum is still above its 20-, 30-, and 50-day moving averages. At the moment, the majority of momentum indicators are neutral. Additionally, the MACD is still positive, suggesting that if the asset finds solid support within the current range, there may be a chance for a fresh uptrend.

Analysts are still split on the near-term outlook, although they are generally optimistic. Titan of Crypto, in a May 17 post on X, suggested that Ethereum still has “more gas in the tank,” citing the weekly Stochastic RSI, which has not yet reached extreme overbought levels. According to him, the rally could extend over the coming weeks.

On the flip side, crypto Patel views the current move as a healthy correction. He points to Ethereum’s rejection at the $2,500 level, an area known as a fair value gap, a price zone where the asset previously moved too quickly, often leaving behind unfilled orders. These gaps tend to get revisited by the market, either to confirm support or resistance. 

$ETH Pullback Loading: Is $1,800 the Next Big Buy Zone?#Ethereum faced rejection NEAR the $2,500 FVG zone and is now entering a correction phase.

Price may drop into the $1,930–$2,100 FVG zone, which aligns with a strong bullish order block around $1,810.

This area is a… pic.twitter.com/tExGXoojfZ

Patel believes ETH could now dip into the $1,930 to $2,100 range, which also aligns with another FVG and a bullish order block near $1,810. Order blocks, which frequently serve as powerful support zones, are collections of sizable buy or sell orders made by institutions or whales. He argues that the next leg higher could push ETH closer to the $4,000–$5,000 range if demand holds here. 

The outlook for Ethereum is still cautiously optimistic, regardless of whether it finds support at current levels or declines further before the next rally.