Ethereum Price Analysis: ETH swiftly spikes to $3,900, retracement to follow?

TL;DR Breakdown

• Ethereum price analysis is bearish today.
• Higher low set at $3,700 yesterday.
• ETH/USD rallied to $3,900.

Ethereum price analysis is bearish today as we expect retracement to follow after a strong rally to the $3,900 next major resistance over the past hours. Likely ETH/USD will look to set another higher low before breaking the $3,900 mark.

The market has traded with mixed results over the last 24 hours. The market leader, Bitcoin, has gained 1.34 percent, while Ethereum has gained 2.19 percent. Tezos (XTZ) is among the best performers from the major altcoins, with a gain of almost 7 percent.

Ethereum price movement in the last 24 hours: Ethereum established strong higher low, rallies to $3,900

ETH/USD traded in a range of $3,698.05 – $3,876.79, indicating substantial volatility over the last 24 hours. Trading volume has increased by 24 percent, totaling $14.23 billion. Meanwhile, the total market cap trades around $460 billion, resulting in a market dominance of 20.31 percent.

ETH/USD 4-hour chart: ETH rejects further upside at $3,900

On the 4-hour chart, we can see the Ethereum price quickly reaching the $3,900 resistance over the past hours, likely leading to another retracement over the next days.

Ethereum price saw bullish momentum return over the past days after previously declining by over 13 percent. Support was found at $3,600 on the 29th of December and retested day later, signaling an end to the decline.

From there, ETH/USD set a higher local high by the end of the weekend, peaking at around $3,850. The following retracement quickly set a higher low around $3,700 yesterday, further confirming the overall trend direction change.

After some consolidation overnight, the Ethereum price started to advance today, reaching towards the previous high. Over the last hours, ETH/USD spiked even higher and finally reached the $3,900 resistance. 

Ethereum Price Analysis: Conclusion 

Ethereum price analysis is bearish today as the next target at $3,900 was quickly reached, and a reaction has been seen since. Therefore, ETH/USD has likely peaked and will move into retracement again.

While waiting for Ethereum to move further, see our articles on crypto tax-loss harvesting, BTC-backed mortgage services, and Pi Wallet.