Ethereum Price Dips Below $1,800: Is a Bullish Rebound Still in Sight?

Ethereum (ETH) is currently undergoing a downside correction, slipping below key support levels of $1,850 and $1,820. At the time of writing, ETH is trading under $1,800 and beneath its 100-hour Simple Moving Average (SMA), signaling short-term bearish momentum in the market.

Ethereum Struggles to Hold Momentum Below Resistance

After failing to break through the $1,880 resistance, Ethereum reversed course and began a downward trend. This bearish move dragged ETH below the 50% Fibonacci retracement level from its recent rally between $1,734 and $1,872. More importantly, the price has dropped below the psychological $1,800 level, though support appears to be forming around $1,785.

Technical indicators show a bearish trendline forming, with resistance building near $1,830 on the ETH/USD hourly chart. Any short-term recovery will have to overcome hurdles at $1,820 and $1,830 before targeting a potential rally toward $1,880, $1,920, or even the $2,000 threshold.

Is Ethereum Headed for Deeper Correction?

If ETH fails to breach the $1,830 resistance zone, the next leg down could be imminent. Initial support lies around $1,785, followed by a key support cluster at $1,750. A decisive break below that level could push the price down toward $1,720, with additional downside potential to $1,685 and possibly $1,640.

On the 4-hour chart, ETH is consolidating above the $1,755 zone, a historically strong demand area that has triggered several rebounds. This support zone, along with the 200 EMA, has helped maintain Ethereum's broader uptrend so far.

Currently, ETH is trading within a sideways channel capped at $1,855. Although the price is holding above $1,800, the RSI is showing signs of weakening momentum, struggling to break past the midpoint. The 100 and 200 EMA are inching closer to a bullish crossover, which could signal an incoming trend shift if confirmed.

Key Bullish Target: $1,949 and Beyond

A confirmed breakout above the $1,855 resistance could trigger a move toward the 78.6% Fibonacci level at around $1,949. Beyond that, Ethereum could attempt to retest the $2,100 zone, previously acting as a swing high.

Upcoming Pectra Upgrade Could Be a Game-Changer. Ethereum’s upcoming Pectra upgrade, scheduled for May 7, may act as a key catalyst for future price movement. Among the anticipated improvements are validator consolidation, raising the staking cap from 32 ETH to 2,048 ETH, and major enhancements to Ethereum’s scalability and wallet functionality. Key Features of the Pectra Upgrade:

• Validator Consolidation: Reduces node overhead by increasing validator capacity.
• More Efficient Layer 2s: Blob capacity per block will double from 3 to 6, reducing fees.
• EIP-7702 Implementation: Adds temporary smart contract features to Ethereum wallets.
• Faster Staking & Gas Sponsorships: Enhances user experience and reduces Layer 2 transaction costs.

These upgrades are set to improve Ethereum's ecosystem significantly, benefiting roll-up solutions like Optimism and zkSync, while also enabling smoother dApp operations and better batch processing.

However, risks remain. The increased validator cap could lead to centralization concerns, and the reliance of decentralized apps on calldata could result in rising transaction costs.

In preparation, Coinbase has announced a temporary pause on Ethereum withdrawals and deposits between 2:50 AM and 3:45 AM PT on May 7, ensuring user funds remain secure during the upgrade. New staking operations will also be paused during this window.

On-Chain Data Reveals Key Supply Zones and Market Sentiment

Blockchain data from IntoTheBlock paints a mixed picture. The main resistance zone for Ethereum currently lies between $1,805 and $1,857, involving 5.85 million ETH held by 4.48 million addresses. In contrast, the closest demand zone from $1,748 to $1,800 only holds about 2.29 million ETH across 3.46 million addresses, suggesting stronger resistance than support.

If ETH can break above this major supply zone, a clearer path to $2,000 may emerge, with fewer resistance zones overhead.

Volume Patterns Suggest Calm Before the Storm

Spot trading volume for Ethereum is currently in a cool-off phase, which some analysts see as a bullish indicator. According to on-chain expert DarkFost, the drop in spot volume during a correction could point to diminished selling pressure, potentially setting the stage for a reversal.

A spot volume bubble map shows a sharp dip, aligning with the recent price pullback. This cooling phase might signal consolidation before a breakout, rather than further downside.

Ethereum’s current correction phase has drawn investor attention as the price teeters near crucial support zones. While technical indicators hint at potential further downside, the upcoming Pectra upgrade and evolving on-chain metrics suggest that a bullish breakout could be on the horizon, especially if ETH reclaims key resistance levels.

Traders and investors should keep a close eye on the $1,830 and $1,855 resistance levels, along with the May 7 upgrade, which may serve as a launchpad for Ethereum’s next major move.