Ethereum price analysis is bullish today as we have seen a drop of around 24 percent from the previous local high at $1,550 over the last 24 hours. Therefore, bears should be exhausted, and the current reaction at $1,200 should turn into retracement later today. However, after a quick retrace, ETH/USD continue even lower later in the week as momentum is still very bearish.
The market has traded in the red over the last 24 hours. The leader, Bitcoin, lost 14.83 percent, while Ethereum 17.3 percent. The rest of the top altcoins followed close by, with Solana (SOL), Dogecoin (DOGE), and Tron (TRX) being the worst performers.
Ethereum price movement in the last 24 hours: Ethereum fails to recover, drops to $1,200
ETH/USD traded in a range of $1,186.54 to $1,522.16, indicating extreme volatility over the last 24 hours. Trading volume has increased by 86.78 percent, totaling $43.61 billion, while the total market cap trades around $152.35 billion, resulting in market dominance of 15.5 percent.
ETH/USD 4-hour chart: ETH ready to reverse?
On the 4-hour chart, we can see strong support at $1,200 reversing the Ethereum price over the last hours. Therefore, we expect a quick push higher by the end of the day as sellers take a pause. However, likely we will see further tests of the downside soon if the recovery is slow.
Ethereum price action has traded in a descending triangle consolidation pattern over the past weeks. Increasingly lower highs were set last week, indicating that attempt to break below the $1,700 could soon follow.
Break lower indeed followed on Friday, leading to more downside over the following days. Some support was initially found at $1,450, meaning a loss of around 25 percent from the previous high.
However, not much recovery followed as ETH/USD briefly tested the $1,550 mark as resistance before further downside tests followed late yesterday. Overnight, ETH had already broken the previous local low and rapidly declined to further lows.
Another 25 percent were lost until the $1,200 mark saw signs of support. A weak bullish candle was already posted earlier today, with further tests of upside currently seen. Likely we will not see a strong recovery as selling pressure still seems to dominate the market.
Therefore, the Ethereum price is likely to move for another freefall overnight. The next major target is located at the $1,000 major psychological round number mark, and if reached would mean another 19 percent loss from the current price levels. Considering the current bearish momentum, this drop could easily occur until tomorrow morning.
Alternatively, if any further downside is not seen, ETH/USD should begin retracement. Likely the first target will be the $1,450 previous local support, with more resistance levels seen at $1,550 and $1,700 previous major resistance. In this scenario, the overall market structure would still remain heavily bearish as another major swing lower high would be set.
Ethereum price analysis: Conclusion
Ethereum price analysis is bullish today as we have seen a strong drop of 25 percent once more over the last 24 hours. Support was found around $1,200 during the middle of the day, leading to a slight reaction higher. Therefore, if further upside continues, we could see the $1,450 previous local support retested as resistance, otherwise, if recovery fails, ETH is likely headed for another strong spike lower over the next 24 hours.
While waiting for Ethereum to move further, see our Price Prediction on UNUS SED LEO, BITO, and Klaytn.