Ethereum price analysis is bearish today as we have seen a break past the $1,700 support and a slow push towards the $1,600 next support. Therefore, we expect even further downside to follow over the next 24 hours, likely leading to further retracement from the last swing higher.
Cryptocurrency heat map. Source: Coin360
The market traded in the red over the last 24 hours. The leader, Bitcoin, lost 2.34 percent, while Ethereum 3.04 percent. The rest of the top altcoins followed closely, with UNI, DOT, and FIL being the worst performers.
Ethereum price movement in the last 24 hours: Ethereum begins retracement
ETH/USD traded in a range of $1,643.28 to $1,745.88, indicating substantial volatility over the last 24 hours. Trading volume has increased by 32.31 percent, totaling $16.59 billion, while the total market cap trades around $202.14 billion, resulting in market dominance of 18.77 percent.
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ETH/USD 4-hour chart: ETH targets $1,600 next?
On the 4-hour chart, selling pressure slowly increased as previous support at $1,700 was finally broken overnight.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has traded with strong bullish momentum over the second half of July as a new swing high was set above $1,600, and another push higher spiked to $1,800. Therefore, a lot of previous loss seen at the beginning of the summer has already been retraced, indicating a major several-month trend reversal could be in play.
However, to confirm this, ETH/USD needs to break even higher and breach at least the $2,000 major price milestone. Before that can be done, another higher, lower low needs to be set as bulls are exhausted from now.
Likely we will see the Ethereum price action drop towards the $1,500 major support. If a reversal is seen around this area, we can expect another wave higher later in the week.
Ethereum price analysis: Conclusion
Ethereum price analysis is bearish today as we have seen the beginning of retracement over the last 24 hours as the $1,700 local support was broken. From there, ETH/USD should look to break towards $1,600 and look to set another higher low later in the week.