Ethereum Price Analysis: ETH drops 12 percent, looks to recover?

Ethereum Price analysis

TL;DR Breakdown

  • Ethereum price analysis is bullish today.
  • ETH/USD set a strong lower low at $3,650.
  • Retracement is currently in progress.

Ethereum price analysis is bullish today as we expect a retracement to look for another lower high over the next 24 hours. Since ETH/USD rejected further downside overnight, the market has indicated that further downside should not follow without a substantial pause.

Ethereum Price Analysis: ETH drops 12 percent, looks to recover? 1
Cryptocurrency heat map. Source: Coin360

Overall, the crypto market has seen slight bearish momentum over the last 24 hours. The market leader, Bitcoin, declined by 1.7 percent while Ethereum by 2.84 percent. Meanwhile, Dogecoin (DOGE) dominates the market with over a 22 percent increase, which slowly retraces as of now.

Ethereum price movement in the last 24 hours: Ethereum sets strong lower low at $3,650, begins to consolidate

ETH/USD traded in a range of $3,680.61 – $3,921.97, indicating substantial volatility over the last 24 hours. Trading volume has increased by 61.41 percent, totaling $26.69 billion, while the total market cap trades around $449 billion, resulting in a market dominance of 20.94 percent.

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

On the 4-hour chart, we can see the Ethereum price action rejecting further downside over the last hours, indicating an upcoming retracement.

Ethereum Price Analysis: ETH drops 12 percent, begins to recover?
ETH/USD 4-hour chart. Source: TradingView

Ethereum price action has seen strong volatility over the last weeks. After attempting to reach the previous all-time high at the end of November, ETH/USD peaked below $3,800.

From there, a massive drop to $3,600 was seen on the 4th of November, clearly indicating the return of bearish momentum. A strong lower high was set after a reaction higher to $4,500 last week.

Bearish momentum returned soon after, initially finding support at the $3,900 mark and setting another lower high before breaking lower. The next push lower was seen Yesterday, taking the Ethereum price to the $3,650 mark. Since then, ETH/USD has started to consolidate as more downside got rejected overnight, indicating an upcoming retracement.

Ethereum Price Analysis: Conclusion 

Ethereum price analysis is bullish today as we expect recovery to follow after further downside was rejected overnight. Therefore, ETH/USD should see a strong retracement over the next days as bulls look to set another lower high.

While waiting for Ethereum to move further, see our articles on Pi Wallet, Electrum Wallet, and Celsius Wallet.

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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