Ethereum price analysis is bearish today as we have seen an upsurge towards previous highs and a lack of momentum above $1,600. Therefore, we expect ETH/USD to reverse and continue declining towards the $1,400 next support later in the week.
Cryptocurrency heat map. Source: Coin360
The market has traded in the green over the last 24 hours. The leader, Bitcoin, gained 2.34 percent, while Ethereum gained over 5 percent. Meanwhile, Cardano (ADA) was the top performer, with over 8.6 percent gain.
Ethereum price movement in the last 24 hours: Ethereum moves back to $1,600
ETH/USD traded between $1,495.68 to $1,621.23, indicating substantial volatility over the last 24 hours. Trading volume has increased by 7.74 percent, totaling $16.26 billion, while the total market cap trades around $196 billion, resulting in a dominance of 18.7 percent.
ETH/USD 4-hour chart: ETH looks to drop again?
On the 4-hour chart, we can see low momentum trading at the $1,600 resistance, indicating that reversal is due soon and more downside will follow early next week.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has seen a strong new swing high set earlier this week as a new high was reached at $1,640. After further tests of upside, only a slightly higher high could be set on Friday, moving ETH/USD into another push lower.
The following retrace also set a slightly higher local low, indicating that the market is still in a consolidation phase. The current test of upside should soon set a lower local high to confirm this, bringing, Ethereum to the downside next week.
The first obvious target is the $1,400 support. Once that is broken, we expect Ethereum price to decline very rapidly. Alternatively, if current consolidation support is not broken, we could see further tests of upside early next week.
Ethereum price analysis: Conclusion
Ethereum price analysis is bearish today as we have seen consolidation around $1,600 continue over the last 24 hours with a lack of momentum to push any higher. Therefore, ETH/USD has established a strong reversal area, which should be used as a base from which to start pushing lower next week.