Ethereum Price Analysis: ETH retraces to $2,450, prepares to drop again?

TL;DR Breakdown

• Ethereum price analysis is bearish today.
• ETH/USD spiked to $2,200 yesterday.
• Retracement to $2,450 followed late yesterday.

Ethereum price analysis is bearish today as we expect another drop to follow after retracement that has set lower high was seen overnight. Likely ETH/USD will drop again, looking to finally set a higher low and reverse from there.

The market has seen bullish momentum over the last 24 hours. The market leader, Bitcoin, has gained 8.69 percent, while Ethereum has over 10 percent. The rest of the market follows closely with similar gains.

Ethereum price movement in the last 24 hours: Ethereum retraces again, sets lower high at $2,450

ETH/USD traded in a range of $2,172.30 – $2,463.59, indicating substantial volatility over the last 24 hours. Trading volume has increased by 21.75 percent, totaling $23.4 billion. Meanwhile, the total market cap trades around $291.4 billion, resulting in a dominance of 17.66 percent.

ETH/USD 4-hour chart: ETH looks for another test of downside?

On the 4-hour chart, we can see buying pressure drying out today, likely leading to another drop lower later in the day.

Ethereum price slowed its decline over the past days after a more than 30 percent drop last week. Initial support was found at $2,300, with reaction higher, setting the current high at $2,550.

Early yesterday, ETH/USD made another spike lower, bottoming out and setting slightly lower low at $2,200. Since then, bulls have pushed ETH to $2,450, where consolidation has been formed since.

Therefore, we expect the Ethereum price action to pivot again to the downside. Likely by the end of the day, we will see ETH/USD test the current low at $2,200. 

Ethereum Price Analysis: Conclusion 

Ethereum price analysis is bearish today as another drop should follow the current consolidation below $2,450. If another lower low is set, we expect more downside to follow this week. Alternatively, ETH/USD could finally begin to reverse.

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