Ethereum price analysis: Ethereum sets a lower low, prepares to reverse?


TL;DR Breakdown

  • ETH moved lower overnight.
  • Support at $2,200 still to be reached.
  • Ethereum prepares to reverse.

Ethereum price analysis is bullish for today as the market established a slightly lower low overnight and currently prepares to retrace some of the loss. Therefore, we can expect ETH/USD to push higher over the next 24 hours.

Ethereum price analysis: Ethereum sets a lower low, prepares to reverse? 1
Cryptocurrency heat map. Source: Coin360

The overall market trades in the red over the last 24 hours. Bitcoin is down by 7 percent, while Ethereum by 6 percent. Rest of the market follows this pattern with similar or worse results.

Ethereum price movement in the last 24 hours

ETH/USD traded in a range of $2,265 – $2,484, indicating a moderate amount of volatility. Trading volume has decreased by 5.6 percent and totals $25.3 billion. Meanwhile, the total market cap trades at $268 billion, resulting in a market dominance of 18 percent.

ETH/USD 4-hour chart – ETH spiked lower overnight

On the 4-hour chart, we can see that Ethereum price action set a slight lower low overnight, with bulls preparing to reverse the market back to the upside as of now.

Ethereum price analysis: Ethereum sets a lower low, prepares to reverse?
ETH/USD 4-hour chart. Source: TradingView

The overall market still trades within a several week bearish price action structure. After the current all-time high at $4,400 was set, ETH/USD retraced to the $1,725 mark where support was found and further downside heavily rejected.

From there, ETH/USD established a clear resistance level at $2,900, which has already been retested several times.This means that until the $2,900 resistance breaks, we can expect the market to trade in a continuously tighter range.

Yesterday, we saw ETH/USD move lower again as mentioned in our previous price prediction. Early in the morning a lower low was set, and the market started to reverse from there. Therefore, we can expect Ethereum price action to push higher later today and try to reach towards the $2,900 resistance again.

Additional resistance is seen around the $2,500-$2,600 area. If Ethereum reverses from there, we can expect the next support at $2,200 to break and further downside to be seen over the next week.

Ethereum Price Analysis: Conclusion 

Ethereum price analysis is bullish as bears are struggling to set a strong lower low and we can expect ETH to push higher over the next 24 hours. Next target is located at the $2,900 mark, which when broken will send a clear signal that bulls have taken over.

While waiting for further Ethereum price action development, read our latest guides on how to cash out Bitcoin, buy Bitcoin stock, and trade Bitcoin.

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