Ethereum price analysis is bearish today as we have seen another lower high set at $2,150 after a considerable retracement. Therefore, ETH/USD is ready to drop again and test the $1,725 previous low.
Cryptocurrency heat map. Source: Coin360
The market has seen bearish momentum resume over the last 24 hours as Bitcoin led the way with a 6.51 percent decline. Ethereum lost even more with a 7.93 percent decline, while the rest of the top altcoins followed close by.
Ethereum price movement in the last 24 hours: Ethereum begins to drop again
ETH/USD traded in a range of $1,963.27 to $2,139.71, indicating a moderate amount of volatility over the last 24 hours. Trading volume has declined by 34.22 percent, totaling $18.76 billion, while the total market cap trades around $237.25 billion, resulting in a dominance of 19.28 percent.
ETH/USD 4-hour chart: ETH returns below $2,000
On the 4-hour chart, we can see the Ethereum price resuming its decline as another lower high has been established over the last 24 hours.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has seen further lows tested over this week. After consolidation above $2,200 support, ETH/USD began to rapidly decline on Wednesday, leading to another 30 percent loss.
New low was set at $1,725, with a strong reaction higher seen immediately. Over the following 24 hours, ETH quickly retraced and set another lower high around $2,150, indicating that bearish momentum will soon return.
Overnight, sellers took over the control once again. Ethereum price has since declined back below the $2,000 support, opening the way towards the previous low at $1,725.
However, if bears fail to reach further downside over the next days and set a higher low, we could see the first sign of major trend reversal. In this scenario, it would be important to wait for a higher local high to be set before the change of trend direction is confirmed.
Ethereum price analysis: Conclusion
Ethereum price analysis is bearish today as we have seen another strong lower high set and selling pressure return overnight. Since the $2,000 local support has already been broken, we expect a lot more downside to follow by the end of the weekend.