Ethereum’s $1,850 Support Holds the Key: Break or Bounce?

• Ethereum’s $1,850 support is crucial holding above it can fuel buying, but a break can push prices to $1,640.
• Resistance at $2,500 and $2,800 is a problem; a breach above those levels could bring a stronger rally.
• The 0.786 Fibonacci point at $1,572 is a key test losing this may send ETH to $1,073, similar to the past market corrections.

Ethereum’s price action is at a critical juncture, with key support and resistance zones shaping its next move. Market insights highlight important Fibonacci retracement levels and potential breakout scenarios.

Ethereum’s Discount Zone and Resistance Levels

Dollarcurrency21 notes that Ethereum is trading below the 0.5 Fibonacci retracement level at $2,581, positioning it in a discount zone. He explains that this area attracts long-term accumulation and remains a focus for traders. 

He points out that Ethereum is finding support around the $1,850 demand zone, a level of historical importance that has been shaping price action. If this support gives way, he cautions that a decline to $1,640 is imminent, where deep liquidity may offer short-term respite. He thinks, however, that holding support above $1,850 may be able to continue bullish momentum and avoid further losses.

On the resistance side, Dollarcurrency21 identifies $2,500 and $2,800 as key price barriers. He states that an order block at $2,800 reinforces selling pressure, making it a critical point for Ethereum’s short-term movement. 

He explains that breaking above these levels and surpassing the Kumo Cloud could lead to a stronger uptrend with higher price targets. Traders are monitoring these resistance zones closely, as price action within this range could determine Ethereum’s next major move.

Fibonacci Retracement and Market Cycles

BONTESA provides further analysis through a consideration of Ethereum’s historical price movements and Fibonacci retracement levels. He sees the 0.786 Fibonacci retracement at $1,572 as a level of critical support, suggesting that remaining above this region can facilitate a bounce in price. Should Ethereum fail to sustain this level, he anticipates a slide down to quarterly support of $1,073, a price previously experienced in prior market cycles.

BONTESA refers to Ethereum’s pattern of experiencing steep corrections before bouncing back, noting that Fibonacci levels previously indicated turning points. He notes that previous market trends have seen the levels serve as good indicators of a reversal. 

He explains that the upcoming weekly sessions will be crucial in determining whether Ethereum stabilizes above support or continues its downward trajectory. He stresses that traders should focus on these Fibonacci zones to confirm the market’s next major movement.