Ethereum price started recovery wave from $1,750 but faces resistance at $1,920
ETH continues to trade below $2,000 and the 100-hourly Simple Moving Average
US House passed bill to repeal IRS crypto tax rule, potentially benefiting DeFi projects on Ethereum
Traders have formed a major support cluster at $1,825, with bulls deploying $753 million in leverage
Technical indicators show ETH in downtrend but could rally toward $2,018 if $1,825 support holds
Ethereum, the second-largest cryptocurrency by market cap, has been struggling to maintain momentum above the $2,000 mark despite some positive developments in the broader market. The digital asset has shown signs of recovery but continues to face hurdles on its path upward.
ETH formed a base above the $1,750 level and started a recovery wave. This recovery push allowed the price to clear several resistance levels including $1,800 and $1,820.
The bulls managed to push the price above the $1,880 level. There was also a move above the 23.6% Fibonacci retracement level of the downward wave from the $2,150 swing high to the $1,752 low.
However, the bears seem to be active near the $1,920 resistance zone. This zone has proven to be a tough barrier for Ethereum to overcome in its recovery attempt.
Ethereum price is now trading below $1,950 and the 100-hourly Simple Moving Average. On the upside, the price appears to be facing hurdles near the $1,920 level with a short-term bearish trend line forming.
The next key resistance is near the $1,950 level. This corresponds to the 50% Fibonacci retracement level of the downward wave from the $2,150 swing high to the $1,752 low.
If Ethereum can clear these hurdles, the first major resistance would be near the $2,000 level. A move above this psychological barrier might send the price toward the $2,060 resistance.
Should the upward momentum continue, an upside break above $2,060 might call for more gains. In such a scenario, Ether could rise toward the $2,120 resistance zone or even $2,250 in the near term.
On the downside, if Ethereum fails to clear the $1,920 resistance, it could start another decline. Initial support sits near the $1,850 level, with the first major support near the $1,800 zone.
A recent development that could boost Ethereum’s prospects is the US House of Representatives’ vote to repeal an IRS rule. The rule had required decentralized finance brokers to report user transactions similar to traditional securities brokers.
The bill, led by Rep. Mike Carey and Sen. Ted Cruz, secured approval in the House after gaining traction in the Senate. It now moves to President Donald Trump’s desk for final approval.
If approved, this regulatory change could create a more favorable environment for the cryptocurrency sector. It might increase the appeal of various DeFi services built on the Ethereum network, potentially driving demand for ETH.
Bullish Reversal Incoming ?
Despite Ethereum’s current struggle below $2,000, derivatives market positions suggest traders are bracing for a bullish reversal. Data from Coinglass shows bulls deployed $753 million in leverage on ETH long positions, narrowly exceeding the $744 million leveraged on active short positions.
This increase in bullish betting comes even as ETH price has dropped 3% in the last 48 hours. Long leverage exceeding shorts after a prolonged bearish period is often an early signal of an impending bullish reversal.
Technical indicators on the daily chart reveal a persistent downtrend. The 5-day, 8-day, and 13-day Super SMAs continue sloping downward, reinforcing bearish control as Ethereum trades near $1,881.
The Bull-Bear Power indicator at -393.47 highlights extreme selling pressure, confirming the sustained bearish trend. However, a potential bottoming-out scenario could emerge if the $1,825 support level holds.
This $1,825 zone represents the last major accumulation area before the March rally attempt. A rebound from this level could trigger a relief rally toward the $2,018 and $2,111 resistance areas, where previous price consolidations took place.
If leveraged longs continue to outpace shorts, Ethereum could witness short-covering momentum. This might accelerate a recovery above $2,000 and keep hopes of a $2,500 rebound alive in the coming weeks.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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