- ETH continued to rally overnight.
- $2,400 resistance prevents further upside.
- Ethereum is likely to decline later today.
Ethereum price analysis indicates bearish momentum to follow over the next 24 hours as previous major resistance around $2,400 was tested overnight after a rapid advance over the past days. Therefore, ETH/USD bulls are likely exhausted, and we can expect another retracement later this week.
The cryptocurrency market traded with a strong bullish momentum over the last 24 hours. Market leaders, Bitcoin and Ethereum, have increased by 13.16 and 9.72 percent, respectively. VeChain (VET) is among the best performers, with a gain of over 19 percent.
Ethereum price movement in the last 24 hours: Ethereum tested previous high around $2,400
ETH/USD traded in a range of $2,108.83 – $2,389.17, indicating a good amount of volatility over the last 24 hours. Trading volume has increased by 56 percent and totals $24.23 billion, while the total market capitalization stands around $275.3 billion, resulting in a market dominance of 17.89 percent.
ETH/USD 4-hour chart: ETH prepares to retrace?
On the 4-hour chart, we can see the Ethereum price rejecting further upside around $2,400 resistance, which should lead ETH towards another several-day retracement.
Ethereum price action starts to trade with an increasingly more bullish market structure as a strong rally over the past days retested the previous swing high around $2,400. After a several-week decline of over 30 percent, previous support of around $1,725 was tested. Together with the current test of $2,400 previous high, we can see that ETH/USD is effectively trading sideways as of now.
The current rejection for further upside should lead Ethereum towards another retracement later this week. This should lead ETH/USD towards the previous major swing low of around $1,725. In case Etherum can set a higher low, we could see a much more substantial reversal taking place over the next weeks.
Ultimately, before Ethereum price action turns bullish once again, a clear higher low needs to be set above $1,725. From there, ETH/USD has to finally break the $2,400 resistance. Once a higher high is set, Ethereum should move towards the previous all-time high over the next months.
Ethereum Price Analysis: Conclusion
Ethereum price analysis indicates bearish momentum to follow over the next 24 hours as bulls have made another spike higher overnight, and further upside is rejected as of now. Therefore, we expect ETH/USD to decline later this week and test previous lows.
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