Ethereum price analysis is bearish today as we expect consolidation below $1,600 to turn into a reversal by the end of the week. Likely ETH/USD will look to set another lower low early in September as sellers continue to dominate the medium-term trend.
Cryptocurrency heat map. Source: Coin360
The market has traded in the red over the last 24 hours. The leader, Bitcoin, lost 2.25 percent, while Ethereum declined by 2.95 percent. Meanwhile, the rest of the market has seen even more selling.
Ethereum price movement in the last 24 hours: Ethereum continues sideways
ETH/USD traded in a range of $1,536.55 to $1,581.95, indicating low volatility over the last 24 hours. Trading volume has declined by 29.28 percent, totaling $16.94 billion, while the total market cap trades around $189.8 billion, resulting in market dominance of 19.49 percent.
ETH/USD 4-hour chart: ETH looks to continue lower?
On the 4-hour chart, we can see selling pressure slowly returning, indicating that another downswing is incoming.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has seen sustained selling over the second half of August. From the last major swing high, ETH/USD has already lost around 30 percent to the current low of around $1,450.
From there, recovery followed as the second retracement began. This time, resistance was found at $1,600 and later retested with failure to move higher. Likely this means that ETH buyers are exhausted, and another pivot lower is about to be seen.
The first obstacle for Ethereum price action would be the $1,500 local support. Once it is broken, we expect ETH/USD to drop all the way past the $1,400 next major price mark.
Ethereum price analysis: Conclusion
Ethereum price analysis is bearish today as we have seen consolidation after a clear lower high set at $1,600 at the beginning of the week. Therefore, we expect ETH/USD to drop even further over the next few days and look to move past the $1,420 previous swing low.