Ethereum price analysis is bullish today as we saw a sharp decline of over 10%, leading to a test of the next major support at $1,550. Therefore, unless further declines occur over the next few hours, we expect ETH/USD to retrace some of the loss later in the weekend.
The market has been trading in the red for the past 24 hours. The leader, Bitcoin, lost 2.1%, while Ethereum, a larger 8.51%, is one of the worst performers among the top altcoins. The rest of the top altcoins follow closely behind with similar results.
Ethereum price movement in the last 24 hours: Ethereum breaks above $1,700, stops at $1,550
ETH/USD traded in a range of $1,553.34 to $1,744.39, indicating high volatility over the past 24 hours. The trading volume increased by 46.74%, totaling $20.777 billion, while the total market capitalization is trading around $189.55 billion, resulting in a market dominance of 16.39%.
ETH/USD 4-Hour Chart: ETH Fails to Cross $1,550
On the 4-hour chart, we can see a reversal candle forming over the past few hours as the bears are finally exhausted. It is likely that Ethereum price will look to reverse from there and post the first bullish close by the end of the day.
Ethereum’s price action has continued to trade in an increasingly tight consolidation pattern over the past few weeks. With support found at $1,700 in late May and a descending resistance trendline formed during recent highs, ETH/USD has seen its trading range narrow in recent days.
Consolidation formed around $1,800 as the bullish momentum grew weaker, and only short quick spikes higher could be seen mid-week. Therefore, the market structure indicated that a downward breakout should follow.
Late yesterday, a lower peak indeed followed. Ethereum price quickly moved above the previous low of $1,700 until initial support was found at $1,660. Steady consolidation followed overnight until another morning spike drove the market lower still.
The next major support at $1,550 was reached quickly, with over 10% lost in about 24 hours. However, no further declines have been seen since, which potentially means the bears are finally exhausted, and ETH/USD is poised to come back over the next few days.
If the new swing low at $1,550 continues to hold later today, we expect a retracement to begin overnight. The previous major support of $1,700 will likely be the first stop of the retracement. From there, further upside could easily follow, as the last swing high was seen just above $1,800.
Once the retracement is observed, we can prepare for another wave lower next week which could be used to enter short positions. The next down market is believed to be as low as the $1,450 mark, which means a good trading opportunity could present itself later next week.
However, right now the market is too unstable. Further declines may follow later in case the $1,550 mark fails to hold. Overall, more price action development needs to be done 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 10+% decline. The $1550 mark should continue to offer support and is likely the new swing low from which a retracement will follow over the next few days. Once ETH/USD starts rising, we might see the previous major support of $1,700 retested first.
Until Ethereum goes further, check out our price predictions on UNUS SED LEO, BITO, and Klaytn.