- ETH moved lower yesterday.
- The support found around 2,125 overnight.
- Market prepares a base from which to push higher.
Ethereum price analysis is bullish for today as the market retraced over the past days and found support just below the $2,200 mark. Therefore, we can expect ETH/USD to start trending higher and move to set another low swing high below $2,600 over the next few days.
The overall market trades in the red over the last 24 hours. Bitcoin has lost 4.7 percent, while Ethereum around 2.6. The rest of the market follows this pattern with Ripple (XRP) being among the worst performers with a loss of 5 percent.
Ethereum price movement in the last 24 hours
ETH/USD traded in a range of $2,147 – $2,338, indicating a moderate amount of volatility. The trading volume has seen a slight increase of almost 10 percent and totals $24 billion. Meanwhile, the total market cap trades around $261 billion, resulting in market dominance of 17.36 percent.
ETH/USD 4-hour chart – ETH briefly breaches $2,200
On the 4-hour chart, we can see the Ethereum price action spiking below the $2,200 support and forming a base from which to reverse later today.
The overall Ethereum price action is still bearish as the market continues to reverse from the last swing high around $2,900 set at the end of May. From there, ETH/USD retested the $2,900 mark and slowly retraced for the second time.
The support area where Ethereum was expected to move to was located around $2,200 as this is where the 61.8 Fibonacci retracement was formed based on the previous swing low of $1,725 and high of $2,910.
This means that entering ETH/USD right now offers a good risk/reward trade setup. However, there is still a strong chance that the market will push even lower after a move higher over the next few days.
Therefore, the upcoming days are crucial for Ethereum. If ETH/USD breaks above the $2,600 mark, we can start to become very bullish again. Alternatively, if another lower low is set, ETH should continue setting lower lows to the next support at $1,900.
Ethereum Price Analysis: Conclusion
Ethereum price analysis is bullish as bears could not move the market any lower overnight. This should lead to an upswing over the next few days as ETH/USD, with the next price target at the $3,200 mark.
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