Ethereum price analysis is bearish for today.ETH/USD peaked just below $3,500 yesterday.Consolidation followed overnight.
Ethereum price analysis is bearish today as we have seen consolidation after another strong push higher over the past few days. Therefore, ETH/USD is likely headed for a healthy retracement and retest of previous local resistances as support.
Cryptocurrency heat map. Source: Coin360
The market has traded in the red over the last 24 hours, with the leaders, Bitcoin and Ethereum, down by 1.49 percent, while Ethereum by 2.27 percent. Meanwhile, VeChain (VET) is one of the best performers, with over 12 percent.
Ethereum price movement in the last 24 hours: Ethereum pauses advance, moves into a consolidation
ETH/USD traded in a range of $3,349.24 – $3,451.90, indicating mild volatility over the last 24 hours. Trading volume has declined by 16.7 percent, totaling $17.51 billion, while the total market cap trades around $405.52 billion, resulting in a dominance of 18.98 percent.
ETH/USD 4-hour chart: ETH looks to finally retrace?
On the 4-hour chart, we can see bearish momentum slowly forming as the Ethereum price action is finally exhausted around the $3,400 price area.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has seen a strong advance continue during the first days of the week. After breaking above $2,800 at the end of the weekend, a strong rally was seen once more, leading ETH/USD to further highs tested just below $3,500.
Therefore, the previous major swing high set in February was broken, indicating that the overall market structure has become increasingly bullish. However, bulls are exhausted again for now, and a local retracement needs to be made before further upside can be tested later in the week.
Likely we will see a quick drop to the $3,300 mark soon, with further downside possible as far as the $3,200 previous high. From there, support likely will be found, reversing the Ethereum price back to the upside.
Ethereum price analysis: Conclusion
Ethereum price analysis is bearish today as we have seen an end to previous advances over the last 24 hours. Therefore, ETH/USD is likely headed for a retracement and retest of previous highs as support later in the week.