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.
Cryptocurrency heat map. Source: Coin360
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.
ETH/USD 4-hour chart. Source: TradingView
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.