Ethereum Price Faces Critical Test
Ethereum (ETH) started a recovery wave above the $1,720 resistance. The price is now consolidating and might attempt a fresh surge above $1,850.
After a close above the $1,550 level, Ethereum extended its recovery wave like Bitcoin. The bulls were able to push the ETH price above the $1,650 and $1,720 resistance levels. There was also a move above the 23.6% Fib retracement level of the downward wave from the $2,860 swing high to the $1,386 low.
Finally, there was a push above the $1,800 resistance zone before the bears appeared. The price seems to be facing major resistance near the $1,850 and $1,880 levels.
Ethereum is now struggling to settle above the $1,850 resistance zone and the 50-day simple moving average (blue). There is also a major bearish trend line forming with resistance at $1,880 on the daily chart.
If the bulls remain in action, they might attempt to clear the $1,850 resistance and the 50-day simple moving average (blue). If they succeed, they could push the price toward the next major resistance at $2,000.
A clear move above the trend line resistance and a follow up move above $2,000 could spark bullish moves and send Ether price toward the $2,120 zone. It is close to the 50% Fib retracement level of the downward wave from the $2,860 swing high to the $1,386 low.
The next resistance sits near the $2,500 level, above which the price could rise and test the $2,860. The main hurdle could be near the $3,200 level and the 1.236 Fib extension level of the downward wave from the $2,860 swing high to the $1,386 low.
Another Rejection In ETH?
If Ether fails to surpass the $1,850 resistance or the trend line, it could start another decline. Immediate support on the downside is near the $1,740 level. The first major support sits near the $1,680 level. A daily close below the $1,680 level might spark heavy bearish moves in Ethereum.
In the stated case, the price could drop and test the $1,500 support. If there is a clear move below the $1,500 support, ETH price might even decline and retest the $1,385 support zone in the coming days.
Overall, Ethereum price shows bullish signs above $1,700. Having said that, the price must settle above $1,850 and then $1,880 to start a fresh medium-term uptrend.