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Ethereum Price Analysis: ETH swiftly drops 14 percent, retracement to follow?

Ethereum Price analysis

TL;DR Breakdown

  • Ethereum price analysis is bullish today.
  • ETH/USD spiked below $3,950 previous swing low.
  • Buying pressure rejecting further upside.

Ethereum price analysis is bullish today as we expect recovery after a strong selloff earlier today. Likely ETH/USD has found support around the previous low of $3,950, leading back to the upside over the next 24 hours.

Ethereum Price Analysis: ETH swiftly drops 14 percent, retracement to follow? 1
Cryptocurrency heat map. Source: Coin360

The market overall has seen strong selling pressure over the last 24 hours. Bitcoin has lost 7.33 percent, while Ethereum 9.11 percent. The rest of the top altcoins follow with similar results.

Ethereum price movement in the last 24 hours: Ethereum spikes below $3,950 after peaking at $4,550

ETH/USD traded in a range of $3,933.51 – $4,550.84, indicating massive volatility over the last 24 hours. Trading volume has increased by 30.71 percent, totaling $25.79 billion. Meanwhile, the total market cap trades around $480 billion, resulting in market dominance of 19.63 percent.

ETH/USD 4-hour chart: ETH starts to recover, returns above $4,000

On the 4-hour chart, we see recovery in progress for the Ethereum price as further downside got rejected over the last hours.

Ethereum Price Analysis: ETH drops 14 percent, retracement to follow?
ETH/USD 4-hour chart. Source: TradingView

Ethereum has seen a slow recovery over the past weeks after a strong decline from the $4,867 previous all-time high set on the 10th of November. Support was eventually found at $3,950, with the following reaction taking ETH/USD to $4,400.

A higher low, indicating a potential reversal, was set on Monday. From there, Ethereum slowly moved higher until a quick break above previous highs was seen yesterday.

Ethereum price peaked at $4,555, quickly reversing lower overnight. Further downside followed, pushing ETH/USD towards previous lows until the $3,950 major low was tested. Bullish momentum appeared again over the past hours, returning ETH higher as the market starts to recover the loss.

Ethereum Price Analysis: Conclusion 

Ethereum price analysis is bullish as we expect a retracement to follow over the next 24 hours as bearish momentum is exhausted. Therefore, ETH/USD is headed higher to recover some of the losses seen earlier today.

While waiting for Ethereum to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.

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.

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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