Ethereum price analysis is bearish today.ETH/USD tested further downside yesterday.Retracement to $2,600 has set another lower high.
Ethereum price analysis is bearish today as we have seen more downside tested over the last 24 hours. Additionally, the following retracement set another lower high at $2,600, indicating more selling will be seen over the next 24 hours.
Cryptocurrency heat map. Source: Coin360
The market continued to trade in the red over the last 24 hours. The leader, Bitcoin, declined by 1.35 percent, while Ethereum by 2.54 percent. Meanwhile, Cardano (ADA) stands out as the worst performer, with a loss of over 5 percent.
Ethereum price movement in the last 24 hours: Ethereum tests further downside, retraces to $2,600 resistance
ETH/USD traded in a range of $2,455.59 – $2,634.25, indicating substantial volatility over the last 24 hours. Trading volume has increased by 24.82 percent, totaling $15.46 billion, while the total market cap trades around $307.8 billion, resulting in a dominance of 17.76 percent.
ETH/USD 4-hour chart: ETH ready to drop again?
On the 4-hour chart, we can see the Ethereum price forming another lower high over the past hours, likely leading to another drop lower later today.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has seen a strong reversal over the past days. From the last major swing high at $3,040, ETH/USD initially quickly lost 15 percent to the $2,600 mark late last week.
Further downside followed over the weekend, leading to the $2,500 next support being tested early yesterday. Quick reaction higher followed, leading to another lower high set. Later in the day, bears continued to push ETH even lower, leading to the current low at $2,450 reached.
Since then, the Ethereum price has retraced to $2,600 again, this time to retest it as resistance. Currently, the resistance is respected, leading to believe that bears are preparing for another push lower later today.
Therefore, the overall market structure looks bearish again. The next major support is located as far as the $2,300 mark, meaning a potential drop of around 10 percent could be seen later in the week.
Ethereum price analysis: Conclusion
Ethereum price analysis is bearish today as further lows were reached yesterday to $2,450. Retracement higher to $2,600 followed, establishing another local lower high, indicating that ETH/USD should head lower again soon.