Ethereum price analysis is bearish today as we have seen further trading in an increasingly tighter range with no signs of bullish momentum. Therefore, we expect ETH/USD to break down over the next 24 hours and start the next week with a test of the $1,600 support.
Cryptocurrency heat map. Source: Coin360
The market traded in the red over the last 24 hours. The leader, Bitcoin, lost 2.85 percent, while Ethereum followed with a slight loss of 0.99 percent. Meanwhile, the rest of the top altcoins traded with results that fall in-between the two majors.
Ethereum price movement in the last 24 hours: Ethereum slowly moves around $1,700
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ETH/USD traded in a range of $1,678.11 to $1,734.49, indicating mild volatility over the last 24 hours. Trading volume has declined by 30 percent, totaling $12.6 billion, while the total market cap trades around $298.52 million, resulting in market dominance of 18.93 percent.
ETH/USD 4-hour chart: ETH looks to retrace?
The 4-hour chart shows a narrow trading range after a strong higher high was set on Thursday, indicating that a retrace should follow early next week.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has seen decreased volatility over the course of the week. After a strong push of around 60 percent higher last week, a new swing higher was initially set at $1,640.
From there, consolidation followed with several rejections of upside, indicating reversal is due next. Spike lower followed as a result on Monday, resulting in a retrace of 17 percent.
However, further retrace did not follow as Ethereum, price action started to quickly push higher, returning back to previous highs. Break higher followed overnight to Friday, setting another slightly higher swing high.
Therefore, we expect bulls to be exhausted once again. ETH/USD will likely dive back below $1,600 previous resistance and look to set another higher low. In case the retracement is deeper, we could be looking at a much stronger wave lower during the upcoming weeks.
Ethereum price analysis: Conclusion
Ethereum price analysis is bearish today as we have seen consolidation with low momentum and volatility, which should mean that reversal is due next. Likely ETH/USD will soon drop below $1,700 and look to retest previous resistance at $1,600 as support.