TLDR
- Ethereum's price initiated a recovery climb from $1,750 but now wrestles with resistance at $1,920.
- ETH remains below $2,000 and trails behind the 100-hourly Simple Moving Average line.
- The US House has greenlit a proposal to overturn an IRS rule on crypto taxation, potentially giving a boost to Ethereum-based DeFi ventures.
- A significant safety net has been formed by traders around the $1,825 level, with bullish traders infusing $753 million in leveraged bets.
- While technical signals reflect a downtrend for ETH, holding firm at the $1,825 support may spark a rally towards $2,018.
Ethereum, the second biggest cryptocurrency by market standings, finds itself stuck under the $2,000 line despite some favorable dynamics. The digital asset shows potential for bouncing back but faces hurdles along the way.
ETH found a footing just above $1,750, kicking off a rebound path that allowed it to clear several caps, including $1,800 and $1,820.
The bulls succeeded in pushing the price past the $1,880 benchmark. It also broke above the 23.6% Fibonacci retracement level from the peak of $2,150 down to the trough at $1,752.
ETH Price
However, fierce opposition from the bears is evident around the $1,920 barricade, proving a stubborn obstacle for Ethereum in its upward quest.
Currently, Ethereum's trading is below $1,950 and the 100-hourly Simple Moving Average. On the upside, the price confronts difficulties near the $1,920 mark where a brief bearish pattern line is developing.
The next critical barrier arises near $1,950. This aligns with the 50% Fibonacci retracement of the downturn from the $2,150 peak to the $1,752 base.
Should Ethereum overcome these barriers, its first notable resistance will be in the vicinity of the $2,000 landmark. Crossing this psychological threshold might push the rate towards $2,060 resistance.
If the upward momentum sustains, breaking above $2,060 could pave the way for resulting gains. In this condition, Ether might climb to the $2,120 resistance zone or potentially even reach $2,250 shortly.
On the flip side, if Ethereum struggles at the $1,920 resistance, it could imply another decline. Initial support exists around the $1,850 point, with substantial backup near $1,800.
A recent legislative move that might fortify Ethereum's outlook involves the US House approving the repeal of an IRS rule. This rule demanded DeFi intermediaries to report transactions akin to traditional brokerages.
Championing the bill were Rep. Mike Carey and Sen. Ted Cruz, receiving the nod in the House following endorsement in the Senate. It's now headed to President Trump's desk for conclusive endorsement.
Upon approval, this regulatory alteration could craft a more welcoming landscape for the crypto industry. This might augment the attractiveness of numerous DeFi offerings on the Ethereum platform, potentially heightening the demand for ETH.
Bullish Reversal Incoming ?
Despite Ethereum's ongoing tussle under the $2,000 mark, market derivatives suggest traders are ready for a bullish turnaround. Coinglass data indicates bulls placed $753 million in leveraged ETH long positions, outpacing the $744 million in active shorts.
This heightened bullish betting proceeds even as ETH value slipped by 3% over 48 hours. Long leverage outstripping shorts after an extended bearish spell often signals a looming bullish turnaround.
Daily technical charts continue to display a persistent downtrend. The 5-day, 8-day, and 13-day Super SMAs keep their downward angle, affirming bearish dominion as Ethereum circulates around $1,881.
Indicators like the Bull-Bear Power at -393.47 emphasize strong selling pressure, corroborating the strengthened bearish phase. But, a stabilization phase might emerge if the $1,825 lifeline persists.
This $1,825 territory marks the last prominent accumulation sphere before the attempted March surge. A rejuvenation here could launch a relief rally towards the $2,018 and $2,111 resistance bands, revisiting focal points of past price consolidation.
Should leveraged longs sustain dominance over shorts, Ethereum might witness a short-covering spike. This could expedite a climb over $2,000 and revitalize prospects of a $2,500 resurgence in upcoming weeks.
