TL;DR Breakdown

  • ETH continued to rally yesterday.
  • Resistance found around $2,200.
  • Market set to reverse today.

Ethereum price analysis indicates bearish momentum to follow later today as the market has reached a $2,200 resistance level and rejected further upside overnight. Therefore, we expect ETH/USD to decline over the next few days and try to retest previous lows.

Ethereum Price Analysis: ETH reached $2,200 overnight, bears ready to take over? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market trades with mixed results over the last 24 hours after a strong rally was seen yesterday. Bitcoin is up by 1.22 percent, while Ethereum has declined by around 0.56 percent. Polkadot (DOT) is among the worst performers, with a loss of 5.11 percent.

Ethereum price movement in the last 24 hours: Ethereum spikes towards $2,200

ETH/USD traded in a range of $2,133.61 – $2,197.65, indicating mild volatility over the last 24 hours. Trading volume has remained flat and totals $15.5 billion, while the total market capitalization stands around 250.45 billion, resulting in market dominance of 18.34 percent.

ETH/USD 4-hour chart: ETH prepares to decline?

On the 4-hour chart, we can see the Ethereum price establishing a consolidation below the $2,200 resistance as bears look to take over next week.

Ethereum Price Analysis: ETH reached $2,200 overnight, bears ready to take over?
ETH/USD 4-hour chart. Source: TradingView

Ethereum price has continued to decline over the past weeks after ETH reached $1,725 support at the end of June and recovered almost 40 percent over the following weeks. A new swing lower high was set around $2,400 and retested with a strong rejection on the 8th of July.

This price action development resulted in another retest of the $1,725 support on the 20th of July. From there, ETH/USD started to rally and quickly gained more than 25 percent to the $2,200 resistance. 

Overnight, Ethereum price consolidated as bulls could not push the market any higher. Therefore, we can assume that bulls are exhausted and ETH/USD is set to decline early next week. 

The first obvious target is located at the $1,725 major support, which, if broken, would lead ETH towards a lot more downside over the next weeks. Alternatively, if a higher low can be established above $1,725 support, we could see Ethereum start to trade towards setting a new medium-term higher high and finally resume moving towards new all-time highs.

Ethereum Price Analysis: Conclusion 

Ethereum price analysis indicates bearish momentum to be seen over the next 24 hours as bears look to reverse ETH/USD after a more than 25 percent rally over the past weeks. Therefore, we expect ETH/USD to start trading lower over the next week and try to test previous support levels.

Source: cryptopolitan.com

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