Ethereum Faces Crucial Test at $1,850 Resistance

Ethereum is currently facing a pivotal moment as it trades within a narrow range, hovering below the $1,850 resistance level and above the $1,750 support level. Following a robust recovery from the $1,400 mark earlier this month, bulls have managed to stabilize the price action. However, the real test is now unfolding as Ethereum needs to decisively reclaim the $2,000 level to confirm a sustainable bullish structure in the coming days.

Market sentiment remains cautious as Ethereum consolidates below resistance, with macroeconomic uncertainty continuing to weigh on risk assets. Top crypto analyst Big Cheds highlighted a technical concern, noting that Ethereum is displaying a 4-hour bearish divergence on the On-Balance Volume (OBV) indicator, accompanied by an upper shadow structure. This technical signal suggests weakening buying pressure and could indicate a potential breakdown if support levels are breached.

With volatility expected to rise, traders are closely monitoring the situation for a potential breakout or breakdown. The coming sessions could define Ethereum’s trend for the next several weeks. Bulls need to act swiftly to maintain momentum and prevent bears from regaining control. If Ethereum fails to hold the $1,750 support zone, it could trigger a short position, confirming a breakdown from the current consolidation pattern.

Ethereum is showing early signs of a bullish structure on lower time frames, giving bulls hope for a broader recovery. After pushing from the $1,400 local low, ETH has managed to hold above key moving averages and consolidate within a tight range. However, the market remains highly cautious, and selling pressure could increase quickly if bulls fail to reclaim higher levels.

Momentum has shifted in Ethereum’s favor over the past few days, with several analysts calling for a potential massive breakout if key resistance levels are breached. A confirmed breakout above $1,850 could open the door for a swift move back to the $2,000 psychological level. Nevertheless, risks remain elevated, and an opposing bearish view suggests that Ethereum could revisit the $1,300 zone if bulls lose control.

Ched’s critical insights point out that Ethereum is forming a 4-hour bearish divergence on the On-Balance Volume (OBV) indicator. This, combined with the appearance of an upper shadow on local structure, signals weakening buying pressure. According to Cheds, a short position could be triggered if Ethereum loses the $1,750 support zone, which would confirm a breakdown from the current consolidation pattern.

Ethereum is trading at $1,815 after days of tight consolidation and modest upward movement. Bulls have managed to defend the $1,750-$1,800 support range, but the real test remains ahead. To shift the broader bearish structure into a confirmed bullish trend, Ethereum must reclaim the $2,100 level. Without this breakout, any rallies are likely to be seen as temporary relief within a broader downtrend.

Holding above the $1,800 level is critical in the coming days. A firm base above this zone would help build strong demand and create the conditions needed for a sustained recovery rally. Bulls are gaining some short-term momentum, but they still face a market clouded by macroeconomic uncertainty and cautious sentiment.

If Ethereum fails to maintain support at $1,750, downside risks will grow rapidly. Breaking below this zone could trigger a sharp sell-off, likely sending ETH toward the $1,500 mark. As the market shows signs of strength, Ethereum’s next move will be decisive. It will determine whether it can join a larger recovery trend or continue struggling within a volatile and uncertain environment.