Ethereum Faces $2,200 Risk Despite Parabolic On-Chain Activity

Ethereum could be facing a sharp drop if it fails to break out above a crucial resistance zone, according to trader Carl Moon.

He highlights a long-standing ascending triangle formation, warning that a breakdown could send ETH tumbling to $2,200—a move that represents a 14% correction from current levels.

“ETH has a high chance of falling to $2,200 if it fails to break through this ascending resistance,” Carl tweeted, pointing to the $2,700 cap that’s rejected multiple rallies since early May.

So far, price action has failed to push convincingly above this resistance line, with each rejection resulting in lower highs and growing bearish momentum.

Meanwhile, Ethereum Ecosystem Hits Record Engagement

In contrast to the cautious technical outlook, Ethereum’s on-chain metrics are booming. Analyst Gordon shared data showing parabolic growth in weekly engagement across the Ethereum ecosystem.

The chart reveals over 17.4 million unique active addresses in a single week, with a significant portion also active across multiple Layer 2 chains. Ethereum’s scaling layers are seeing 7.5x growth year-over-year, a sign of expanding real-world usage.

“Activity on ETH is going parabolic,” Gordon wrote. “Do you know what happens next?”

This explosion in active users, particularly across L2s, signals that Ethereum’s underlying fundamentals are heating up—potentially setting the stage for longer-term strength despite short-term price weakness.

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Short-Term Volatility vs. Long-Term Momentum

The Ethereum market now stands at a crossroads. On one side, technical charts point to a possible correction if resistance holds. On the other, network activity is booming, suggesting that underlying demand may soon outweigh bearish setups.

The big question: Will strong ecosystem growth be enough to absorb a sell-off and flip resistance into support—or will the market need one more flush before liftoff?

Traders are watching the $2,700 resistance and $2,200 support levels closely. A decisive move on either end could set the tone for Ethereum’s next major leg.

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