thenewscrypto.com
- Ethereum is currently trading around the $1.8K mark.
- $ETH’s demand remains intact despite the recent pullback.
Ethereum ($ETH) is trading within the $1,881 range after a 4.24% plunge over the past 24 hours, as the market enters a decisive phase. After recovering from recent lows and reclaiming its long-term ascending trendline, the asset is now facing its first major test at a weekly supply zone, where buying momentum is beginning to meet stronger resistance.
Recent whale positioning reflects a divided market. While many large traders continue to hold long positions, short sellers remain active around key resistance levels. This tug-of-war has increased the likelihood of heightened volatility, with liquidation activity and trading volume expected to play a major role in determining Ethereum’s next direction.
Key Support Levels Could Decide Whether Buyers Stay in Control
$ETH recently broke through two significant buy walls before finding support at a third, where buyers have continued defending the neckline of an emerging inverse head-and-shoulders pattern. This suggests that demand remains intact despite the recent pullback.
The $1,850-$1,870 zone has emerged as Ethereum’s most important near-term support, with a broader support cluster extending from $1,848 to $1,789. Analysts also point to a potential liquidity sweep below $1,851, which could trigger a sharp market reaction.
If $ETH loses this support decisively, the market could face more downside before establishing a stronger base.
Ethereum’s Resistance Levels Hold the Key to the Next Move
On the upside, Ethereum faces immediate resistance between $1,900 and $2,000, with a more concentrated supply zone sitting between $1,916 and $1,956. A breakout above these levels, supported by stronger trading volume, would confirm that buyers have absorbed overhead supply and regained short-term control.
Several analysts believe Ethereum has already completed the first phase of its recovery after reclaiming its long-term trendline. If the current structure continues to hold, momentum could gradually strengthen and improve confidence across the broader altcoin market, as $ETH has historically led periods of capital rotation into major alternative tokens.
Some market participants expect any rally into the $1.9K-$2K range to be followed by a period of consolidation or distribution before another test of lower support levels. For now, Ethereum remains at a pivotal point where the reaction around key support and resistance zones is likely to define its next major move.
Furthermore, looking at the technical chart of $ETH, the Moving Average Convergence Divergence (MACD) line is below the signal line. The short-term momentum has slowed down. Notably, both lines are above zero, hinting that the macro trend remains bullish.
The market is losing short-term steam within a larger uptrend, and it’s seen during sideways consolidations before the next move.
Ethereum’s Relative Strength Index (RSI) at 42.31 is in the slight weak consolidation zone. Sellers currently hold a slight edge over momentum, keeping short-term price action tilted downward. Also, it has plenty of room to fall further before buyers step in on oversold conditions.
Significantly, the 40–45 RSI zone often acts as momentum support where the buyers attempt a rebound.