The price of Ethereum has rallied from its most recent pullback, trading at around the $2140-$2200 level at the time of writing.

Last week the world’s second largest cryptocurrency by market capitalisation was forecast to fall under the $2,000 mark, according to analysts. 

Ethereum looks to be establishing its position between the $2100-$2200 level, before starting to move back towards $2600.

The $2,400 level remains a key level of resistance, says a Forex Crunch report, which has been rejected numerous times.

That said, a trend reversal looks on the cards, with the Ethereum price looking comparatively solid as it stands.

Ethereum has experienced a substantial drop from its recent record high, however.

After hitting $4,600 at the end of April, beginning of May, the price of the cryptocurrency rapidly dropped to $1,800 on 22 June.

Since then, it recovered around 20% to hit $2,380 on 5 July, but over the past three days has declined to around the $2,100 level.

The recent rally to $2,150 – a 3% rise – could signal this cryptocurrency is ready to edge up once again.

Nevertheless, should the $2,100 not hold, Ethereum may drop to the next support level, the $1,900 mark, rapidly.

If this happens, another fall to the $1,700 is a possibility.

Meanwhile, the U.S. Federal Reserve referred to digital assets for the first time in its semi-annual Monetary Policy Report to Congress, out on Friday.

The report stated: “The surge in the prices of a variety of crypto assets also reflects in part increased risk appetite.”

This came as the price of Bitcoin – the world’s largest cryptocurrency by market cap – is up around 250% from last year, despite the decline from its April record high.