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Ethereum Price Analysis: ETH spikes to $2,600, ready to retest $2,400 as support?

Ethereum Price analysis

TL;DR Breakdown

  • ETH rallied once again overnight.
  • Next resistance at $2,600 reached today.
  • Market likely to start retracing later today.

Ethereum price analysis indicates bearish momentum to follow over the next 24 hours as the $2,600 resistance was reached and any further upside was rejected. Therefore, we expect ETH/USD to reverse later today and look to retest the $2,400 previous resistance as support.

Ethereum Price Analysis: ETH spikes to $2,600, ready to retest $2,400 as support? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market traded in the green over the last 24 hours. Bitcoin has remained relatively flat with a small gain of 0.18 percent. Meanwhile, Ethereum has been among the best performers, with a gain of $5.71 percent.

Ethereum price movement in the last 24 hours: Ethereum rallies to $2,600

ETH/USD traded in a range of $2,434.87 – $2,635.49, indicating a good amount of volatility over the last 24 hours. Trading volume has slightly increased by 3.6 percent and totals $19.38 billion. Meanwhile, the total market capitalization stands around $304 billion, resulting in market dominance of 18.32 percent.

ETH/USD 4-hour chart: ETH ready to retrace?

On the 4-hour chart, we can see Ethereum price rejecting further upside, which should lead towards a retest of $2,400 previous resistance over the next few days.

Ethereum Price Analysis: ETH spikes to $2,600, ready to retest $2,400 as support?
ETH/USD 4-hour chart. Source: TradingView

Ethereum price action has seen substantial gain over the last week. After retesting the previous major support level around $1,725, ETH/USD started to rally on the 20th of July. Since then, we have seen a gain of over 50 percent, with the $2,400 previous swing high resistance broken.

Therefore, the overall price action structure has become bullish once again. However, as another spike higher was seen overnight, we can assume that ETH/USD is currently overextended, and a retracement is needed over the next few days.

The first obvious target of support for the retracement is located around the same previous resistance of $2,400. If Ethereum price respects this support, we can expect a lot more eupside to follow over the next week.

Ethereum Price Analysis: Conclusion 

Ethereum price analysis indicates bearish momentum to follow over the next 24 hours as the next resistance level around $2,600 was reached, and further upside is rejected. Therefore, we expect ETH/USD to reverse and set another higher low around the $2,400 previous resistance. 

While waiting for Ethereum to retrace, read our articles on Satoshi Nakamoto, DeFi, and Bitcoin fees.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Lapin

Lapin

Lapin is an experienced freelance Crypto and Financial market writer and analyst. He has been trading for several years and holds a bachelor’s degree in Finance.

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