Ethereum price analysis is bearish today as we have seen a strong retrace from the previous low at $900 over the past days end with respect to resistance at $1,150. A retest of it has already been made later today, indicating that local double top has formed and more downside is incoming.
Cryptocurrency heat map. Source: Coin360
The market has traded with substantial bullish momentum over the past 24 hours. The leader, Bitcoin, gained 5.1 percent, while Ethereum gained 7.23 percent. Meanwhile, most of the top altcoins recovered even more after a substantial decline last week.
Ethereum price movement in the last 24 hours: Ethereum regains 30 percent
ETH/USD traded in a range of $1,025.61 to $1,159.99, indicating substantial volatility over the last 24 hours. Trading volume has declined by 12.1 percent, totaling $21.57 billion, while the total market cap trades around $136.93 billion, resulting in a dominance of 15.13 percent.
ETH/USD 4-hour chart: ETH ready to continue lower?
On the 4-hour chart, we can see a local double top reversal pattern formed at the $1,150 previous support, which now acts as a resistance. Likely this means that another clear lower high is set, and ETH/USD is ready to continue even lower over the rest of the week.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has traded with strong bearish momentum for most of June. From the last swing high around $1,900, ETH/USD has already managed to decline by over 50 percent to the $900 mark.
Initial reactions higher were seen at both the $1,100 mark and the $1,000 mark, slightly slowing the market down and indicating that a reversal could soon follow. However, further downside was reached once again during the weekend.
This time, the next major round price milestone at $900 was reached. From there, ETH reacted to the $1,000 mark before further upside followed yesterday. By the end of Sunday, previous support at $1,150 was retested as resistance, with no more substantial upside seen since. Later, today the newly found resistance was retested, effectively forming a local double top pattern.
This Ethereum price action development indicates that another clear lower high is set, and a reversal back to the downside will soon follow. Therefore, we expect ETH to push back to the $900 current low over the next few days.
Not much support should be seen if enough momentum follows, opening the way for a lot more downside to be reached later in the week. Likely the next target will be the $800 mark as it is the next psychologically important round number mark.
Alternatively, if the $900 mark holds, we could see a double top pattern finally set and a reversal of the several-week decline to follow. However, to become bullish again in a significant way, further confirmation of reversal would need to be made by a clear break of the $1,150 current high and preferably also the $1,250 resistance. Once that is done, we predict a several-week retrace back to previous major support around $1,700.
Ethereum price analysis: Conclusion
Ethereum price analysis is bearish today as we have seen a strong retrace to the $1,150 mark end with a local double top currently being formed. If further upside does not follow to the $1,250 next resistance, we expect ETH/USD to drop even lower and look to break past the $900 current swing low.