Ethereum Price Breaking This Confluence Resistance Could Spark Fresh Rally

Key Takeaways:

  • Ether’s price is holding major support at $1,800 and the 50-day simple moving average.
  • ETH/USD traded below a key bullish trend line, with support at $1,930 on the daily chart.
  • The price could start a new rally if it clears the $1,960 resistance zone.
Munich, Germany; 10 March 2023: A man holds an iPhone XR where the logo of the Ethereum layer 2 platform Arbitrum can be seen
Ethereum Price Breaking This Confluence Resistance Could Spark Fresh Rally

NEW DELHI (CoinChapter.com) — Ethereum’s ETH is consolidating above $1,800. However, it must stay above $1,800 to start a fresh increase in the coming sessions.

Ethereum (ETH) Price Holds Above 50-Day SMA

Ethereum saw a strong bearish reaction from the $2,150 resistance zone against the US dollar this past week. The ETH/USD pair formed a short-term top at $2,146 and started a bearish wave.

There was a break below the $2,020 and $2,000 support levels. Besides, the pair traded below a key bullish trend line with support at $1,930 on the daily chart. It opened the doors for more losses below the $1,900 level, similar to Bitcoin below $28,000.

Ethereum’s daily price chart
Ethereum’s daily price chart. Source: ETHUSD on TradingView.com

However, the bulls provided support near $1,800 and the 50-day simple moving average. The bears made two attempts to clear the 50-day simple moving average but failed.

A low is around $1,787, and Ethereum is now attempting a new increase. It climbed above the 23.6% Fib retracement level of the downward move from the $2,146 swing high to the $1,787 low. On the upside, immediate resistance is near the $1,930 level.

The first major resistance is near the $1,960 level. It is close to the 50% Fib retracement level of the downward move from the $2,146 swing high to the $1,787 low.

If Ethereum climbs above the $1,960 confluence resistance, there are chances of a new rally. The next major resistance is near the $2,060 level. A clear move above the $2,060 resistance might lead Ether toward the $2,150 zone. Any more gains could open the doors for a test of $2,250.

More Downsides?

If there is no upside break above $1,960, ETH could resume its decline. The first major support is near the $1,800 level and the 50-day simple moving average.

The next major support is near the $1,720 zone. A close below the $1,720 level might push the price into a bearish zone. The price may decline toward the $1,550 support in the stated case.

Overall, Ether’s price is holding crucial support at $1,800. If the bulls fail to protect $1,800, there could be a drop to $1,550. On the other hand, ETH might start a new increase toward $2,150.

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