Ethereum price analysis is bullish today as we have seen a strong drop lower once more and a quick reaction higher overnight. Therefore, ETH/USD is likely looking to retrace and set another lower local high.
Cryptocurrency heat map. Source: Coin360
The market has traded with mixed results over the last 24 hours. The leader, Bitcoin, gained 0.71 percent, while Ethereum lost over 0.85 percent. The rest of the top altcoins traded with similar, slightly mixed results.
Ethereum price movement in the last 24 hours: Ethereum fails to recover, tests further downside
ETH/USD traded in a range of $1,611.34 to $1,722.50, indicating strong volatility over the last 24 hours. Trading volume has declined by 13 percent, totaling $13.37 billion, while the total market cap trades around $200 billion, resulting in market dominance of 19.55 percent.
ETH/USD 4-hour chart: ETH looks to retrace further?
On the 4-hour chart, we can see a steady retrace since midnight as another lower local high is yet to be set.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has seen a strong swing high set at $2,000 earlier this week. However, further upside did not follow as selling pressure slowly retraced the market lower.
After the last strong rejection lower on Wednesday, ETH/USD started to decline rapidly, quickly losing another 15 percent to the $1,600 support. Reversal did not follow again, as another lower spike took ETH to $1,525 late yesterday.
Since then, the Ethereum price has traded higher as another lower local high looks to be set. Therefore, until then, we expect further upside for ETH/USD over the rest of the weekend. Additionally, until a clear push higher is set, bearish momentum should continue dominating early next week.
Ethereum price analysis: Conclusion
Ethereum price analysis is bullish as we have seen further failure to recover yesterday and another spike lower by the end of the day. However, since then, ETH/USD has started to retrace, indicating that another lower local high needs to be set first.