Ethereum price analysis is bearish today as we have seen further consolidation and an inability to recover over the last 24 hours. Therefore, ETH/USD should follow along with the overall trend and break lower again by the end of this week.
Cryptocurrency heat map. Source: Coin360
The market has traded with mixed results over the past day. The leader, Bitcoin, lost just 0.23 percent as consolidation continued, while Ethereum saw a slight gain of 0.21 with similar price action. Meanwhile, Chainlink, Vechain, and Tezos were the top performers from the major altcoins with over 6 percent gain.
Ethereum price movement in the last 24 hours: Ethereum rejects upside after retracement earlier this week
ETH/USD traded in a range of $1,777.97 to $1,827.29, indicating mild volatility over the last 24 hours. Trading volume has declined 44.08 percent, totaling $12.4 billion, while the total market cap trades around $218.47 billion, resulting in a dominance of 17.56 percent and a market rank of 2nd place.
ETH/USD 4-hour chart: ETH ready to break down?
On the 4-hour chart, we can see Ethereum rejecting the upside several times over the past days after recovery from the $1,750 low. This price action development should lead to a break lower later in the week as consolidation has become too narrow.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has formed a several-week descending triangle pattern from the lows set in May and the increasingly lower highs. The last lower major high was set on Monday, with an immediate reaction lower later in the day.
Therefore, the descending trendline of resistance is still strong and should continue offering resistance later in the month. Additionally, the minor lower high set on Tuesday after a brief spike higher indicates that bearish momentum is increasing to break past the $1,700 to $1,750 support area.
Since the last spike higher, ETH/USD has traded in a narrow range around $1,800 with a lack of clear short-term direction. However, when considering the previous price action, we expect more downside to come soon.
Once the break occurs, the first support can be found around $1,750, which has served twice as a clear pivot point so far in June. If this level is broken, the next major support is at $1,700 and should lead to a strong reaction higher and another swing lower high set.
However, once the $1,700 major support breaks, Ethereum price will have a lot more downside potential open as the next major support is located as low as the $1,550 mark. Overall, in this scenario, we can expect more downside to follow over the following months.
Alternatively, if ETH can break the current consolidation and the previously mentioned descending resistance, we could see a major market reversal play out. Before this scenario can be confirmed, we would like to see a clear break of the $1,900 current swing low, followed by a retracement that sets a clear higher low to confirm the breakout.
Ethereum price analysis: Conclusion
Ethereum price analysis is bearish today as any attempt to recover further has ended with rejection. Therefore, we expect ETH/USD to end the current consolidation in an increasingly tighter range soon and look to spike below the $1,750 previous lows. Once that is done, the next target is located close by at the $1,700, which, if broken, would open up the way for a lot more downside later in June.