Ethereum price analysis is bearish today as we saw a solid rally to the $2,950 resistance turn into consolidation overnight. Since strong selling pressure returned over the last hours, we expect ETH/USD to decline even further and look to break the previous low at $2,725.
Cryptocurrency heat map. Source: Coin360
The market has seen bullish momentum over the last 24 hours. The leader, Bitcoin, gained 1.96 percent, while Ethereum gained 3.36 percent. Meanwhile, the rest of the top altcoins have gained even more.
Ethereum price movement in the last 24 hours: Ethereum sets higher high, drops 8 percent
ETH/USD traded in a range of $2,821.32 to $2,956.69, indicating strong volatility over the last 24 hours. Trading volume has increased by 24.81 percent, totaling $17.96 billion, while the total market cap trades around $340.41 billion, resulting in a dominance of 19.62 percent.
ETH/USD 4-hour chart: ETH tests $2,725 previous swing low
On the 4-hour chart, we can see a substantial spike lower over the past hours leading back to the $2,750 support, indicating that further downside could soon follow.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has seen consolidation and an upsurge over the past days. After a higher local low was set at $2,775, ETH/USD rapidly moved higher, reaching the $2,950 previous major resistance.
Further upside did not follow as buying pressure stopped overnight. After further consolidation this morning, sellers slowly regained momentum, eventually leading to a massive spike lower.
The previous swing low at $2,725 was briefly tested, however, rejection currently can be seen. Ethereum price will likely react higher later today and prepare for the next push lower as the overall trend is still heavily bearish.
Ethereum price analysis: Conclusion
Ethereum price analysis is bearish today as we have seen a strong reversal and drop from the $2,950 resistance over the last hours. Therefore, ETH/USD will likely attempt to push even lower over the next days.