Ethereum’s price has shown signs of recovery above the $1,850 zone against the US Dollar. However, to sustain this upward momentum, ETH must overcome the crucial resistance at $1,900. Failure to do so could lead to a renewed decline in the cryptocurrency’s value.
Ethereum’s Gradual Ascent
Ethereum has been making a slow but steady recovery above the $1,850 support level. The price managed to climb above $1,870 and the 100-hourly Simple Moving Average, mirroring a similar trend seen in Bitcoin’s movement.
Despite the recent improvements, bearish forces continue to exert pressure below the $1,900 mark. A recent peak formed near $1,886, and the price is currently consolidating gains. There was a minor pullback, testing the 23.6% Fibonacci retracement level of the upward movement from the $1,832 low to the $1,886 high.
Presently, Ethereum is trading above $1,870 and the 100-hourly Simple Moving Average. The hourly chart of ETH/USD also shows a key bullish trend line with support around $1,855. This trend line aligns closely with the 50% Fibonacci retracement level of the aforementioned upward move.
Crucial Resistance Levels
Looking ahead, Ethereum faces immediate resistance around $1,885, followed by the recent high. The primary barrier lies at the $1,900 level, where significant selling interest can be expected. A successful breakthrough above $1,900 could pave the way for a more substantial price surge.
In such a scenario, the next resistance lies near the $1,920 level, and a decisive close above this could set the stage for further gains. Subsequent resistance points stand at $1,975 and, more importantly, the psychological barrier of $2,000.
Potential for a Bearish Turn
Should Ethereum fail to surpass the $1,900 resistance, a fresh decline might ensue. Initial support on the downside lies near $1,865 and the 100 hourly SMA.
A more critical support level can be found around $1,855, coinciding with the bullish trend line. A break below this trend line could signal a shift into a bearish zone, with the next major support at $1,830.
Ethereum’s current price recovery is facing a significant hurdle at $1,900. To maintain its upward momentum, ETH must successfully breach this resistance level. However, if it fails, a potential decline may lead to testing lower support levels. Traders should closely monitor these key levels to make informed decisions amidst the cryptocurrency’s volatile market conditions.