Ethereum price analysis: ETH spikes to $2,850, retracement next?

TL;DR Breakdown

• Ethereum price analysis is bearish today.
• ETH/USD continued higher overnight.
• Next resistance at $2,850 reached over the past hours.

Ethereum price analysis is bearish today as we have seen a strong higher high set at $2,850, likely meaning that bulls are finally exhausted. Therefore, ETH/USD should see retracement soon, likely to set another higher low.

The market has continued higher over the last 24 hours. The leader, Bitcoin, gained 0.59, while Ethereum by 3.79 percent. Meanwhile, Avalanche (AVAX) is the top performer, with over 12 percent gain.

Ethereum price movement in the last 24 hours: Ethereum resumed the advance, sets higher high

ETH/USD traded in a range of $2,647.29 – $2,825.16, indicating a substantial amount of volatility. Trading volume has declined by 2.51 percent, totaling $16.19 billion, while the total market cap has increased to $447.7 billion, resulting in a dominance of 18.4 percent. 

ETH/USD 4-hour chart: ETH peaks below $2,850?

On the 4-hour chart, we can see the Ethereum price starting to reject further upside, likely leading to a retracement later today.

Ethereum price action has seen a strong break out of the previous consolidation so far this week. After the $2,600 local resistance was broken, ETH/USD quickly moved to the previous high of around $2,750.

Initially, strong rejection was seen, potentially indicating reversal back to the downside. However, more buying pressure resumed late yesterday, moving the price of ETH towards the previous high.

After the $2,750 mark was broken, the Ethereum price saw a small consolidation form as the resistance got retested as support. Further upside followed during the day, leading to the next major resistance at $2,850.

Currently, rejection for further upside is seen once again. This means that ETH/USD has peaked and is due to begin retracement soon.

Ethereum price analysis: Conclusion 

Ethereum price analysis is bearish today as we have seen strong advance continue over the last 24 hours, likely meaning that bulls are exhausted. Therefore, ETH/USD should retrace and drop even lower to set another higher low over the rest of the week.

While waiting for Ethereum to move further, see our articles on Crypto Launchpads, DeFi 101, and what you should know about DAOs.