Ethereum price analysis is bearish.ETH/USD rallied back to previous highs.Bearish momentum is likely to continue today.
Ethereum price analysis is bearish today as a rally back towards previous highs was seen after a quick spike lower overnight. Therefore, we expect ETH/USD to move lower again and test further downside.
Cryptocurrency heat map. Source: Coin360
The overall market traded with mixed results over the last 24 hours. The market leaders, Bitcoin and Ethereum, are up by 3 and 0.84 percent, while most of the top altcoins are in the red.
Ethereum price movement in the last 24 hours: Ethereum rebounds after a test of $3,400
ETH/USD traded in a range of $3,385.76 – $3,622.29, indicating strong volatility over the last 24 hours. Trading volume has increased by 17.5 billion and is up by 16.97 percent. Meanwhile, the total market cap trades around $423.87 billion, resulting in market dominance of 18.06 percent.
ETH/USD 4-hour chart: ETH/USD to reverse again?
On the 4-hour chart, we can see Ethereum price quickly returning back towards previous highs, meaning that bulls are likely exhausted, and another move lower will follow.
ETH/USD 4-hour chart. Source: TradingView
Ethereum price has seen strong bullish momentum during the first days of October. After a several-day consolidation above $2,750 low, a spike higher was seen on the 1st of October.
Over the following days, ETH/USD reached $3,650 previous major resistance. Below the resistance, consolidation was formed late last week, indicating an upcoming reversal as bulls are exhausted.
The first sign of more downside was seen overnight as Ethereum price quickly moved to $3,400. However, an equally strong upside was seen this morning, returning ETH/USD almost to the previous resistance at $3,650.
Likely we will see bears take over again and test further downside over the next 24 hours.
Ethereum Price Analysis: Conclusion
Ethereum price analysis is bearish today as a quick spike higher will likely be followed by another reversal from the resistance area. Therefore, we expect ETH/USD to be headed lower over the next 24 hours.
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