Ethereum price analysis is bullish today as we have seen a strong drop once more to the $1,600 next major support. Therefore, ETH/USD is ready to regain some of the loss and retest the $1,680 previous support as resistance.
The market has traded with mixed results over the last 24 hours. The leader, Bitcoin, lost 0.43 percent, while Ethereum 2.87 percent. Meanwhile, most of the top altcoins saw a slight gain counter to the majors.
Ethereum price movement in the last 24 hours: Ethereum fails to recover, drops further
ETH/USD traded between $1,611.34 to $1,722.50, indicating strong volatility over the last 24 hours. Trading volume has declined by 13 percent, totaling $19.37 billion, while the total market cap trades around $200 billion, resulting in market dominance of 19.55 percent.
ETH/USD 4-hour chart: ETH ready to retrace?
On the 4-hour chart, we can see a steady reaction higher forming above $1,600, indicating that more upside will be retested overnight.
Ethereum price action has traded with strong bullish momentum over the last weeks as a series of higher highs resulted in a new major swing high set at $2,000. From there, a steady retrace began as bullish momentum could not return for several days.
Eventually, the steady retrace turned into a strong spike lower, quickly breaking past the $1,800 closest support. Later yesterday, the next major support was already reached at $1,680, meaning a drop of over 10 percent.
However,m despite a slight consolidation at the newly found support, Ethereum price failed to recover. Strong selling pressure returned overnight, leading to the next support at $1,600, where a reaction higher should follow over the next 24 hours.
Ethereum price analysis: Conclusion
Ethereum price analysis is bullish today, as we have seen a quick spike to $1,600 next support, where the decline stopped. Therefore, we expect ETH/USD to retrace higher and look to set another lower local high.