Ethereum price analysis is bullish today as we have seen a strong drop of over 10 percent resulting in a test of the next major support at $1,550. Therefore, unless more downside follows over the next hours, we expect ETH/USD to retrace some of the loss later in the weekend.
The market has traded in the red over the last 24 hours. The leader, Bitcoin, lost 2.1 percent, while Ethereum, a more substantial 8.51 percent and is one of the worst performers among the top altcoins. The rest of the top altcoins follow close by with similar results.
Ethereum price movement in the last 24 hours: Ethereum breaks $1,700, stops at $1,550
ETH/USD traded in a range of $1,553.34 to $1,744.39, indicating strong volatility over the last 24 hours. Trading volume has increased by 46.74 percent, totaling $20.777 billion, while the total market cap trades around $189.55 billion, resulting in market dominance of 16.39 percent.
ETH/USD 4-hour chart: ETH fails to breach $1,550
On the 4-hour chart, we can see a reversal candle forming on over the last hours as bears are finally exhausted. Likely Ethereum price will look to reverse from there and post the first bullish close by the end of the day.
Ethereum price action continued to trade in an increasingly tighter consolidation pattern over the past weeks. With support found at $1,700 at the end of May and descending resistance trendline formed over the last swing highs, ETH/USD saw its trading range get very narrow over the past days.
Consolidation was formed around $1,800 as bullish momentum became increasingly weaker, and only short quick spikes higher could be seen during the middle of the week. Therefore, the market structure indicated that a break lower should follow.
Late yesterday, a spike lower did indeed follow. Ethereum price quickly moved past the $1,700 previous major swing low until some initial support was found at $1,660. Steady consolidation followed overnight until another spike in the morning took the market even lower.
Next major support at $1,550 was reached quickly, with over 10 percent lost in around 24 hours timeframe. However, no further downside has been seen since, potentially meaning that bears are finally exhausted, and ETH/USD is ready to retrace over the next few days.
If the new swing low at $1,550 continues to hold later today, we expect a retracement to start overnight. Likely the $1,700 previous major support will be the first stop for the retracement. From there, further upside could easily follow as the last swing high was seen just above $1,800.
Once the retracement is seen, we can prepare for another wave lower next week that could be used to enter short positions. The next market to the downside is seen as low as the $1,450 mark, meaning that a good trade opportunity could come up later next week.
However, right now, the market is too unstable. More downside could follow later in case the $1,550 mark fails to hold. Overall, more price action development needs to be made before further trades can be made.
Ethereum price analysis: Conclusion
Ethereum price analysis is bullish today as we expect a quick reversal from the massive spike lower of over 10 percent. The $1,550 mark should continue offering support and likely is the new swing low from which retracement will follow over the next days. Once ETH/USD starts moving higher, we could see the $1,700 previous major support retested first.