Ethereum Price Analysis: ETH retraces to $3,140, ready for another drop?
Ethereum price analysis is bearish today as we expect another drop to follow after a retracement to $3,140, where a lower high was set. Therefore, ETH/USD will likely reverse again today and look to test further downside next.
Cryptocurrency heat map. Source: Coin360
The market has seen bullish momentum return over the last 24 hours. The market leader, Bitcoin, has gained 2.23 percent, while Ethereum 3.04 percent. Meanwhile, Binance Coin (BNB) is among the top performers, with a gain of over 6 percent.
Ethereum price movement in the last 24 hours: Ethereum retraces previous loss
ETH/USD traded in a range of $2,947.68 – $3,138.20, indicating a moderate amount of volatility in the market. Trading volume has increased by 44.97 percent, totaling $19 billion, while the total market cap trades around $371 billion, resulting in a market dominance of 19.02 percent.
ETH/USD 4-hour chart: ETH prepares to drop again?
On the 4-hour chart, we can see selling pressure slowly returning for the Ethereum price as another lower high has been set.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has slowed down its decline over the past days. After previously declining by almost 20 percent, initial support was found around $3,100 on the 7th of January.
From there, further downside was tested twice. The last push lower took ETH/USD to $2,950 major support, where strong rejection was seen yesterday.
Since then, the Ethereum price action has retraced back above $3,100, setting another lower high. However, sellers are likely getting exhausted, meaning that we could see ETH/USD establish a higher low next.
Ethereum Price Analysis: Conclusion
Ethereum price analysis is bearish today as we expect another test of downside to follow after a retracement took the market back above $3,100. Likely ETH/USD will test the previous low again, with a potential to finally set a higher low.
While waiting for Ethereum to move further, see our articles on Coinbase Vault vs Wallet, Cardano price prediction, and crypto tax-loss harvesting.
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