Ethereum price analysis is bearish today.ETH/USD retraced to $3,080 previous resistance yesterday.A slight reaction higher was seen overnight.
Ethereum price analysis is bearish today as we have seen only a slight bounce from the $3,080 resistance turned support late yesterday. Therefore, ETH/USD is likely headed for another test of downside as a deeper retracement is needed before another rally can be attempted.
Cryptocurrency heat map. Source: Coin360
The market has moved in the red over the last 24 hours as retracements from previous highs are seen across the board. The leader, Bitcoin, has lost 1.49 percent, while Ethereum 1.86 percent. The rest of the top altcoins have followed with similar price action.
Ethereum price movement in the last 24 hours: Ethereum retraces to $3,080
ETH/USD traded in a range of $3,087.49 – $3,174.39, indicating slight volatility over the last 24 hours. Trading volume has declined by 33.18 percent, totaling $12.33 billion, while the total market cap trades around $374.22 billion, resulting in market dominance of 18.75 percent.
ETH/USD 4-hour chart: ETH looks to test further downside?
On the 4-hour chart, we can see a weak reaction higher so far today, likely meaning more downside will be tested below $3,080 before another higher local low is set.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has reached further upside over the past week. Beginning the week with a bounce from $2,850 previous low, ETH/USD steadily gained another 12 percent to the $3,200 next major resistance.
From there, ETH saw a quick reaction lower late yesterday, retesting previous local support at $3,080 as support. Since then strong reaction higher has not been seen, indicating that further retracement will likely follow later in the weekend.
The next local support level is located around $3,000 previous major support. If the Ethereum price can set another higher low there, we should see a lot more upside next week, potentially leading to the $3,300 next major price milestone.
Ethereum price analysis: Conclusion
Ethereum price analysis is bearish today as we have seen quick retracement to $3,080 after previously setting a strong higher high at $3,200. Therefore bulls are still exhausted and a deeper retracement is needed before more upside can be tested next week.