Ethereum has found itself unable to break through the crucial resistance level around $1,850 over the past week, as buying volume continues to diminish. Several significant technical resistance points are converging at this exact price, creating a formidable barrier that Ethereum has repeatedly failed to overcome in recent trading sessions.
This tight $1,850 resistance area sees multiple reinforcing technical indicators that have collectively hampered ETH’s attempts at upward momentum. The converging points of resistance include the volume-weighted average price (VWAP), the Fibonacci retracement level (0.618), a clearly defined daily supply zone, and the critical Point of Control derived from recent volume trading profiles. Each has independently posed a considerable obstacle, and together they represent an even more powerful barrier.
Adding to Ethereum’s difficulties is the notably weak buying pressure observed during recent price moves upwards. Previous breakout attempts have consistently lacked the necessary catalyst of strong trading volume, leaving ETH unable to establish a decisive move beyond the current key zone. This lack of volume indicates investor uncertainty rather than strong bullish conviction, further solidifying the current price ceiling.
Looking deeper into Ethereum’s technical position, the volume-weighted average price has transitioned from its previous role as a support level to now act as resistance, highlighting traders’ entry points and signaling broad market hesitation at these price levels. The 0.618 Fibonacci retracement is also positioned directly within the $1,850 zone, reinforcing its status as a notable rejection area.
Compounding these indicators is a well-established daily supply zone—an area previously showing intense selling pressure—paired also with the recent sessions’ Point of Control. This particular level represents where the majority of trading has taken place, emphasizing the heightened battle between buyers and sellers. Currently, sellers have maintained the upper hand, successfully holding the line against Ethereum’s advances.
Given these dynamics, Ethereum’s immediate outlook remains predominantly cautious. Unless there is a substantial increase in trading volume coupled with a decisive daily candle close above the $1,850 resistance, ETH is susceptible to downward pressure. Traders should anticipate potential price retracements toward lower support levels, particularly around $1,700 or near the 200-day moving average. Long positions taken at current price levels would thus involve higher than usual risks considering the clustered technical barriers.
To convincingly change this bearish outlook, Ethereum must establish a clear breakout over $1,850 supported by increased volume, along with a firm move above its long-term channel’s upper boundary. If achieved, such a breakout could attract fresh momentum-driven interest, possibly opening the door to additional upside targets near $1,950 and the psychologically significant $2,000 level.
Until these conditions are decisively met, traders are advised to proceed cautiously, closely monitor volume developments, and manage risk carefully around Ethereum’s current critical resistance area.
