Ethereum encounters hurdle at $1,850 resistance zone as trading volume wanes
Ethereum's been stuck at the $1,850 barrier for a week straight, struggling to move forward due to a lack of fuel in its tank. Here's the lowdown on why that's happening.
Over the last few sessions, the price of Ethereum has been attempting to break through the $1,850 mark, only to fail miserably. This isn't just indecision—it's due to some hefty technical barriers that converge at this spot.
Let's take a closer look at those key technical points:
- Resistance overload: VWAP SR, the 0.618 Fibonacci retracement, a daily supply zone, and Point of Control—these guys all hang out together at $1,850, creating one almighty brick wall.
- Thirsty for volume: Ethereum's been trying to rally hard, but it's been missing one crucial ingredient—juicy volume! Without a serious influx of capital, the price ain't gonna budge.
- Barely breaking free: Ethereum's still cooped up within its longer-term price channel, and it's about to bump into the roof. It needs a strong signal to show it's a contender before it can dare exit the channel.
So, what's the deal with Ripple breaking through its Fib support and 200-day moving average? Could a rally toward $3.00 be on the cards?
Maybe, but for now, the evidence suggests otherwise. With tired rally attempts and thin order books, the price action remains lackluster, and traders looking to long should proceed with extreme caution.
In the coming days, if Ethereum can't break the $1,850 barrier, it might slip back toward the channel's lower boundary, or drop as low as supporting levels like $1,700 or the 200-day moving average. To change the narrative, Ethereum needs to breach the $1,850 with a hefty volume surge and a decisive move above the channel's upper trendline, triggering the arrival of momentum traders.
Lastly, some exciting news for Solana enthusiasts: Solana's upcoming project, Cedar, is gearing up for a major launch that could catapult the project into the spotlight!
Enrichment Data:
Ethereum's prolonged struggle at the $1,850 level is due to powerful resistance created by several technical indicators: the 50% Fibonacci retracement level, a daily supply zone, and Point of Control[1][2]. In addition, a strong bearish trend line forms at the $1,830 level on the hourly chart[1][2], making it difficult for Ethereum to break through the $1,850 barrier and start a new uptrend.
Macroeconomic uncertainty and weakening buying pressure indicated by technical indicators like the On-Balance Volume (OBV) divergence have also contributed to the support of the bearish trend[5].
In the short term, Ethereum could experience a downward trend if it breaks below the $1,785 support level, potentially leading to a sharp sell-off and further declines[1][2][5]. However, a successful break above the $1,880 resistance level could push the price toward short-term targets like $1,920[1][2], with more ambitious targets of $2,000 or $2,050 possible if momentum picks up[1][2].
In the longer term, analysts predict Ethereum could reach between $4,910 and $5,960 by the end of 2025 depending on market conditions and investor sentiment[4]. However, these projections are subject to significant market volatility and sentiment shifts.
- Ethereum's persistent lingering at the $1,850 barrier for a week is attributable to a formidable resistance generated by several technical indicators, such as the 50% Fibonacci retracement level, a daily supply zone, and Point of Control.
- An additional obstacle is the strong bearish trendline that forms at the $1,830 level on the hourly chart, making it hard for Ethereum to surpass the $1,850 barrier.
- Solana's upcoming project, Cedar, is preparing for a significant launch, a move that could thrust Solana into prominence.
- Ethereum's rallying attempts have been marred by meager volume, an essential factor for price advancement that's been conspicuously absent.
- To break free from its current stagnation, Ethereum should breach the $1,850 barrier with a substantial volume surge and decisively move above the channel's upper trendline, attracting momentum traders.
- In the short term, Ethereum may face a downturn if it plunges below the $1,785 support level, causing a sudden sell-off and further price drops.
- Analysts foresee Ethereum reaching between $4,910 and $5,960 by the end of 2025, assuming favorable market conditions and positive sentiment persist.
