Ethereum price analysis is bullish today as we have seen another quick, however, small spike lower. ETH/USD reached a major psychological support level at $1,000 and quickly reacted higher during the first half of the day. Therefore, we expect the bottom to finally be found as bears are exhausted, and a reversal is due to be seen over the rest of the week.
Cryptocurrency heat map. Source: Coin360
The overall market has seen further decline across the board over the last 24 hours. Bitcoin lost 7.32 percent, while Ethereum 11.29 percent. The rest of the market followed close by with similar results.
Ethereum price movement in the last 24 hours: Ethereum fails to breach $1,000, reacts higher
ETH/USD traded in a range of $1,025.68 to $1,227.68, indicating strong volatility over the past day. Trading volume has declined by 19.18 percent, totaling $28.46 billion, while the total market cap trades around $131.27 billion, resulting in market dominance of 14.77 percent.
ETH/USD 4-hour chart: ETH retests $1,150 as resistance
On the 4-hour chart, Ethereum has posted a clear rejection candle, indicating a reversal to come. However, previous support at $1,150 is yet to be breached as the first confirmation for the reversal.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price action has continued to trade in a strong bearish momentum over the past week. After the last consolidation around $1,800 was seen on the 10th of June, ETH/USD started to decline rapidly and broke past the $1,700 previous major support.
A strong selloff followed until the $1,450 mark, where a slight reaction higher was seen to $1,550. From there, the decline continued on Monday, leading to another 25 percent drop at $1,100.
Once again, reaction higher quickly followed to $1,250, with consolidation seen yesterday. Therefore, the market showed signs of a potential reversal to come later in the week.
However, the $1,250 mark continued to hold and reversed ETH/USD one more time, leading to further lows tested at $1,000 this morning. A quick reaction followed again, and previous support at $1,150 was retested as resistance.
Currently, we can see another test of downside. If a higher low is set over the next 24 hours, we expect ETH to start a several-week retracement. Alternatively, more downside tests will follow if the $1,000 mark breaks again.
Ethereum price analysis: Conclusion
Ethereum price analysis is bullish today as we have seen a reaction from the $1,000 after a small spike lower this morning. Likely this could be the end of the several-day downtrend, and a strong reversal will follow later in the week. However, to confirm this scenario, we would like to see a clear push above the $1,150 previous support and $1,250 previous resistance.
While waiting for Ethereum to move further, see our Price Prediction on UNUS SED LEO, BITO, and Klaytn.
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