Ethereum Price Analysis: ETH rejects downside below $2,400, reversal incoming?

TL;DR Breakdown

• Ethereum price analysis is bullish today.
• ETH/USD saw further decline overnight.
• Support at $2,400 was briefly broken earlier.

Ethereum price analysis is bullish today as the current rejection for further downside likely indicates an upcoming retracement. Likely ETH/USD has finally peaked and is now ready to regain some of the over 25 percent loss.

The cryptocurrency market has seen strong selling pressure continue over the last 24 hours. Bitcoin lost 7 percent, while Ethereum over 10 percent. Meanwhile, the top altcoins followed with a similar loss.

Ethereum price movement in the last 24 hours: Ethereum tests more downside, reacts higher from $2,300

ETH/USD traded in a range of $2,330.25 – $2,851.45, indicating extreme volatility over the last 24 hours. Trading volume has increased by 42.19 percent, totaling $31.12 billion. Meanwhile, the total market cap trades around $293.5 billion, resulting in a market dominance of 18.03 percent.

ETH/USD 4-hour chart: ETH reacts back above $2,400

On the 4-hour chart, we can see the Ethereum price likely finding the bottom as rejection for downside was seen earlier.

Ethereum price saw bearish momentum slowly return early this week. After previously setting strong higher high at $3,400 and retesting it, forming a double top, ETH/USD began to move lower again on the 17th of January.

Brief reversal and test of upside was seen on the 20th of January. However, ETH continued lower later in the day, quickly spiking below $2.900. 

Yesterday, the selloff continued, leading the Ethereum price to $2,500 next. Today bears continued to dominate, leading to the $2,300 mark being tested briefly. Over the past hours, ETH/USD has reacted higher, returning above $2,400, which could indicate an upcoming retracement after a more than 25 percent drop.

Ethereum Price Analysis: Conclusion 

Ethereum price analysis is bullish for the rest of the day as rejection for further downside can be seen over the last hours. The $2,300 mark has likely been established as the swing low from which ETH/USD will retrace.

While waiting for Ethereum to move further, see our articles on Coinbase Vault vs Wallet, Cardano price prediction, and crypto tax-loss harvesting.