Ethereum has regained a key resistance level, currently priced at $1,811, and could see a breakout towards $2,100 if it maintains support above $1,800. Analysts warn of a possible 15% drop if the $1,750 level fails, emphasising the need for bullish momentum.Market observers are divided on whether ETH’s current price phase will lead to significant gains or further declines.
Ethereum (ETH) is at a pivotal moment, having recently regained a significant resistance level of $1,800. As it trades within a tighter range, analysts say the cryptocurrency could experience a major breakout towards the $2,100 mark. However, it seems crucial for the bulls to act swiftly, or a potential 15% drop may loom on the horizon.
After bouncing back from the $1,750 support level, ETH has spiked nearly 20% over the past fortnight, recently peaking at $1,873, the highest it’s been in a month. It shows a modest rise of about 1.92% compared to its opening at the start of the month, especially after wrapping up April with a 1.95% decline. Analysts indicate that maintaining prices above $1,807 in the next few weeks could help Ethereum exit a challenging five-month slump.
On Tuesday, the price dipped again towards $1,750 but quickly rebounded above the $1,800 mark. Analyst Michaël van de Poppe mentioned in his observations that ETH appears to be confirming the $1,800 level as support. He inferred that there’s a substantial chance for a breakout towards $2,100 in the next week or so if this support persists. This $2,100 threshold has historical significance as it acted as a key resistance point before Ethereum’s anticipated breakout in Q4 2023.
Another analyst, known as World of Charts, has been tracking ETH’s post-downtrend recovery. He notes that ETH has been caught in a sideways movement within a $1,750 – $1,870 range since breaking free from downward pressure in late April. He perceives this as a consolidation phase that could lead to a solid breakout, nudging prices toward a previously targeted $2,500 level, lost back in February.
However, caution prevails as market analyst Daan Crypto Trades warns that bulls must fuel momentum quickly. Despite ETH hovering above the $1,750 mark, a failure to maintain this might trigger another price retest, potentially resulting in a 15% drop into the $1,500s range. He articulated that if this crucial level falters, it might lead to a sharp decline back down, likened to erratic ‘Bart moves.’
Alternatively, Crypto Amsterdam echoed concerns, suggesting that if Ethereum struggles to hold from current positions, it could retrace to the mid-April levels of $1,550-$1,650 before finding its way back up to highs above $1,900. Presently, Ethereum sits at $1,811, marking a slight daily decline of around 1%. The path ahead is marked with uncertainty and potential volatility.
