Ethereum price analysis is bearish today as we have seen a quick retrace back towards previous support, which now acts as a resistance. Therefore, we expect another lower high to be soon set and a further drop to follow.
Cryptocurrency heat map. Source: Coin360
The market has traded in the green over the last 24 hours. The leader, Bitcoin, has gained 3.25 percent, while Ethereum was one of the top performers as it gained 8.13 percent. Meanwhile, the rest of the top altcoins have seen performance between the two majors.
Ethereum price movement in the last 24 hours: Ethereum reversed and spiked higher
ETH/USD traded in a range of $1,362.95 to $1,491.61, indicating substantial volatility over the last 24 hours. Trading volume has declined by 14.18 totaling $17.13 billion, while the total market cap trades around $181.33 billion, resulting in market dominance of 18.3 percent.
ETH/USD 4-hour chart: ETH ready to drop further?
On the 4-hour chart, we can see the $1,500 mark offering some resistance, for now, likely leading to another lower high set and further decline later this week.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has seen a steady reversal after a substantial rally earlier this month. After several attempts to push higher ETH/USD saw strong rejection at the end of Sunday, leading to a quick retest of $1,500 previous support.
This time, the support did not hold for long as another push lower followed early on Monday. Eventually, a new low was reached at $1,360, indicating that a clear local lower low was set.
Reversal began overnight to today, quickly regaining some of the loss until morning. Since then, Ethereum price has slowly traded even higher and retested previous support as resistance. This should soon lead to another lower local high set and further attempts to push lower later in the week.
Ethereum price analysis: Conclusion
Ethereum price analysis is bearish today as we have seen a strong retrace earlier today lead to a retest of previous support as a resistance at $1,500. Unless a further spike higher does not follow over the next hours, we expect ETH/USD to continue lower over the next days and target the $1,320 next minor support level.