Ethereum price analysis is bullish today as we have seen a strong decline over the last 24 hours to the $1,300 mark, where reaction higher followed over the past hours. Therefore, we expect ETH/USD to rally even higher and look to return towards $1,400 resistance.
Cryptocurrency heat map. Source: Coin360
The market has traded in the red over the last 24 hours. The leader, Bitcoin, lost 4 percent, while Ethereum over 6 percent. Meanwhile, the rest of the market traded with similar selling pressure.
Ethereum price movement in the last 24 hours: Ethereum drops another 12 percent
ETH/USD traded in a range of $1,287.42 to $1,424.14, indicating strong volatility over the last 24 hours. Trading volume has increased by 108.93 percent, totaling $21.5 billion, while the total market cap traded around $164.3 billion, resulting in market dominance of 17.75 percent.
ETH/USD 4-hour chart: ETH ready to retrace?
On the 4-hour chart, we can see bullish momentum returning voer the last hours, likely leading Ethereum price action to retest the $1,400 previous support as resistance soon.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has seen over a week long decline from the last major swing high at $1,800. After initial support was found at $1,550 last week, ETH/USD failed to continue higher, confirming further selling pressure to come.
Another drop lower was seen on Thursday as ETH declined as low as the $1,400 support. From there, reaction higher was insignificant again, slowly leading to another pivot lower.
Selling pressure increased late yesterday, leading Ethereum price action to drop over 12 percent until the next major support at $1,300. Considering the strong loss over the last 24 hours, we expect ETH/USD to be ready to rally higher over the next days.
Ethereum price analysis: Conclusion
Ethereum price analysis is bullish today as we have seen strong lower low set at $1,300 and a clear reaction higher over the last hours. Therefore, we expect ETH/USD to continue higher overnight and retest previous lows as resistance before further price action can follow later in the week.