Ethereum Price Analysis: ETH fails to break $3,775 resistance, another drop incoming?

TL;DR Breakdown

Ethereum price analysis is bearish today.
ETH/USD retested $3,775 resistance.
Bearish momentum slowly returning.

Ethereum price analysis is bearish today as the $3,775 resistance prevented further upside again. Likely ETH/USD needs another retracement before more upside can be reached.

Ethereum Price Analysis: ETH fails to break $3,775 resistance, another drop incoming? 1 — Cryptocurrency heat map. Source: Coin360

The crypto market overall saw a slight bullish momentum return over the last 24 hours. Both Bitcoin and Ethereum traded in the green, with a small gain of 0.07 and 0.59 as previous resistance levels were retested. Most of the altcoin saw similar price action.

Ethereum price movement in the last 24 hours: Ethereum retests resistance at $3,775

ETH/USD traded in a range of $3,704.69 – $3,769.92, indicating mild volatility over the last 24 hours. Trading volume has declined by 26.79 percent, totaling $8.86 billion. Meanwhile, the total market cap traded around $444.8 billion, resulting in a market dominance of 19.9 percent.

ETH/USD 4-hour chart: ETH set to test downside again?

On the 4-hour chart, we can see the Ethereum price slowly reversing to the downside as the $3,775 resistance could not be broken.

Ethereum Price Analysis: ETH fails to break $3,775 resistance, another drop incoming? — ETH/USD 4-hour chart. Source: TradingView

Ethereum price has seen a strong selloff this week after a new strong higher high was set last week. After reaching $4,150 on the 23rd of December, ETH/USD set a series of local lower highs before a sharp drop on the 27th of December.

Over the next days, Ethereum declined by around 13 percent until a reaction was seen at $3,600. From there, the market briefly recovered above $3,800 before testing previous support again on Friday.

Since then, the Ethereum price action has seen a return to the $3,775 mark, likely resulting in a lower local high set. Over the next 24 hours, ETH/USD should test the downside again, with a higher low to be expected.

Ethereum Price Analysis: Conclusion

Ethereum price analysis is bearish today as we saw the $3,775 mark reverse the price action again. Likely ETH/USD is headed for another test of downside before break higher can be attempted.

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

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Source: https://www.cryptopolitan.com/ethereum-price-analysis-2022-01-02/