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HomeEthereumEthereum price analysis: ETH spikes to $1,600, swift retrace to $1,680 overnight?

Ethereum price analysis: ETH spikes to $1,600, swift retrace to $1,680 overnight?

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.

While waiting for Ethereum to move further, see our articles on how to buy Litecoin, Filecoin, and Polkadot.

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