Ethereum Faces Short-Term Weakness but Eyes Long-Term Bullish Setup

Ethereum's recent price drop to below $2,000 has sparked concerns among investors and analysts. The rejection of the 200-week moving average signals short-term weakness for the cryptocurrency.

However, a long-term bullish setup is still intact if Ethereum holds its rising support line formed since 2022. This trendline is crucial in determining the direction of the market.

If Ethereum breaks below this trendline, it could face further declines toward $1,383 or $1,071. On the other hand, holding the trendline may lead to a recovery attempt toward $2,116 and beyond.