Ethereum is stuck at the $1.850 resistance zone, as volumes dry up

Ethereum is stuck at $1,850 for more than a week. It has no momentum and cannot break away. This is due to a convergence of multiple technical obstacles.

During the recent trading session, Ethereum’s (ETHThe price of gold has tested the area around $1,850 repeatedly, but failed to break through. The reason for this is not indecision. It is the result of a number of technical factors combining to form formidable resistance. ETH will likely remain in a narrow range if it doesn’t see a spike in purchasing volume. It could also pull back further to support levels lower. .

Points of interest

• Converging Resistance: All of the VWAP-SR indicators, including 0.618 Fibonacci, Daily Supply Zone and Point of Control, cluster at around $1850.
• The volume drought: The recent attempts to move higher were hampered by a lack of volume.
• Channel Context: ETH is still within its long-term price channel and approaching the upper limit of its range without any confirmation.

Analysis in detail

The VWAPSR (Volume Weighted Average Support/Resistance), a level of Ethereum, is dynamic and often changes roles. VWAP, which reflects the average price traders pay, has shifted to resistance as ETH nears $1,850. This shows that most are below this level.

Similarly, the Fibonacci 0.618% retracement from the most recent major swing high to low sits almost on top VWAP. Reinforcing the area as a reject zone.

On top of that, there is the daily supply zone where sellers had previously taken on buying pressure to drive prices lower. This is exacerbated by the Point of Control (POC) from the latest volume profile. It marks the price where the majority of trading took place. Buyers and sellers will clash when the price hits the POC. This time, however, sellers won.

Most telling, perhaps, is the absence of volume at any rallies. Trading volume is required for breakouts, and traders need to feel pressured into buying in large amounts. The recent tests for ETH at $1,850 were marked by thin orders and mild buying interest. Candles remain small without above-average volumes, and the price does not close above resistance with a decisive closure. This signals exhaustion, rather than conviction.

Price action to come

Ethereum’s price should remain below $1.850 as the least-resistance path. This could lead to a decline, perhaps towards the lower limit of the channel, $1.700 or 200 day moving average. Trading longs would put traders at high risk, as they are up against resistance.

This bearish outlook must be invalidated by ETH delivering a clear break: Look for a heavy volume close above $1.850, and a continued move past the upper trendline.

This combination will likely draw momentum traders to test targets such as 1,950 or $2,000 and attract them. It is important to be cautious and trader risk should remain tight around the critical zone.