Will Ethereum Break $1,880 and Ignite a Rally to $2,100?

Ethereum’s price hovers near the critical $1,880 resistance level, with analysts watching closely for a potential breakout. A move above this threshold could lead to targets of $1,950 and $2,100, aided by strong on-chain support. However, failing to maintain levels above $1,800 could intensify bearish pressure.

Ethereum (ETH) is currently at a pivotal juncture, hovering just below the crucial resistance level of $1,880. After managing to push above $1,800 last week and approaching a local high of $1,873, the price has stabilised around $1,830, showing a slight increase of about 1% in the past day. However, the close of April was marked by a fourth consecutive monthly loss for ETH, even as bullish sentiment appears to be bubbling up now.

Right now, Ethereum’s trading range seems to have created a tight contest, centering between the $1,800 and $1,880 mark. As things stand, ETH price is floating at $1,812.99 after bouncing back from a recent low of $1,734. There’s immediate resistance spotted at $1,835 on the hourly chart, which places ETH just below a short-term descending trendline.

A look at The Kingfisher’s liquidation heatmap reveals that there are substantial clusters of short liquidations stacked between $1,835 and $1,870. These – well, they could pull the price up, leading to potential volatility spikes. If ETH breaks through the $1,880 barrier, the upward path to $1,950 seems relatively free of obstacles. Conversely, there’s liquidity building below at $1,800 and $1,780. And a slip below $1,800 might push Ethereum down toward deeper liquidity levels, heightening bearish pressure ahead.

On the other hand, there’s significant support for Ethereum in its current consolidation phase, backed by strong on-chain buying activity. According to data from IntoTheBlock, more than 6.36 million ETH were bought by approximately 4.5 million different addresses within the $1,772 to $1,824 bracket. The majority of wallets in this range provides a solid foundation for price support.

This specific range also aligns with the 50% Fibonacci retracement point of the recent rally from $1,734 to $1,873. Analysts suggest that any pullback to this area might see investors jump in to reinforce their positions, keeping ETH relatively strong. However, there’s a caveat: if this support region fails, the next significant level may not come until around $1,650, thanks to minimal historical trading volumes underneath $1,772.

Market analyst Jackis has drawn parallels between Ethereum’s current price action and Bitcoin’s impressive breakout in 2020. He suggests that Ethereum finds itself within a descending channel—similar to the accumulation phase Bitcoin exhibited right before it surged past the $20,000 mark. If this pattern holds, it might pave the way for Ethereum to fire up an explosive rally in the months to come.

Crypto analyst Tony has pointed out that breaking through $1,880 is pivotal for confirming a trend change. The last significant lower high for Ethereum before its recent downturn was at this very level, and successfully breaching it could mark the formation of a new higher high.

Looking ahead, if Ethereum manages to overcome $1,880, analysts are eyeing targets set at $1,950 and beyond—specifically $2,000. Should that momentum gather steam, prices could even reach $2,050 or $2,100. Presently, Ethereum’s daily RSI is sitting at about 56, suggesting there’s still room for further price growth before it hits overbought territory.

As long as ETH stays above $1,785 and remains in the supportive range of $1,772 to $1,824, the sentiment leans bullish. The coming days should reveal whether Ethereum is gearing up for another upward surge or if it will retreat back to its lower support levels.

This article aims to provide insights, but it’s essential to note that it doesn’t offer financial advice. Investors are always encouraged to do their own thorough research before diving into any financial decisions.