- Ethereum (ETH) is testing key support around $1,800, with a breakout above $1,850 potentially targeting $1,910.
- However, failure to hold this level could lead to a decline toward $1,775 or lower.
Ethereum (ETH) continues to consolidate around the $1,800 mark, trading in a narrowing range that has left traders on edge. Following a series of lower highs since the April peak near $1,910, ETH has entered a symmetrical triangle pattern, signaling potential indecision in the market. As we approach May 7, Ethereum’s price action suggests a crucial moment for both bulls and bears. So, will the bulls defend the $1,800 base, or is a further decline on the horizon?
Testing Key Support Levels
Currently, Ethereum is testing a significant support zone between $1,785 and $1,800. This area aligns with the lower boundary of the symmetrical triangle and coincides with the 200-period exponential moving average (EMA). Ethereum’s price sits just under $1,807, with resistance looming around the $1,845-$1,850 range. Over the past two weeks, this level has repeatedly capped bullish movements, signaling a potential barrier for further upside momentum.
A breakout above $1,850 could trigger a surge toward $1,910 and possibly $1,950, where major resistance from early April distribution sits. However, if Ethereum fails to break through this resistance, it risks sliding lower, with support levels to watch at $1,775 and $1,740.
Also read: Cardano Achieves Bridge-Free Bitcoin Transfers – Is ADA Primed for a Major Bull Run?
Neutral Indicators and Volatility Compression
Ethereum’s price action has seen a significant reduction in volatility, as indicated by tightening bands on the Keltner Channel. The RSI currently sits at 45.88, while the Stochastic RSI hovers just under 50, signaling neutrality in momentum. The MACD remains below the zero line but is flattening, indicating that selling pressure is easing, yet there has been no bullish crossover to signal a reversal.
Ethereum’s Next Move: A Breakout or Breakdown?
With the price action locked within a narrow range and momentum indicators signaling indecision, Ethereum is awaiting a catalyst for the next significant move. A clean breakout above $1,850 could mark the beginning of a bullish push toward $1,910 and beyond. On the other hand, a failure to hold support at $1,785 may trigger a move to lower levels, with potential support found near $1,720 and $1,680.
As Ethereum nears the apex of its symmetrical triangle, the next 24 hours could see a volatility spike. Traders should be prepared for a potential breakout, which will likely define Ethereum’s direction for the coming weeks. Will the bulls manage to hold the $1,800 level, or will a bearish breakdown take control? The answer could come sooner than expected.