Ethereum Price Analysis: ETH swiftly retests $3,900, reversal to the upside to follow?

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TL;DR Breakdown

  • Ethereum price analysis is bullish today.
  • ETH/USD continued to retrace yesterday.
  • Support at $3,900 still holds.

Ethereum price analysis is bullish today as we expect recovery to follow after a decline of almost 15 percent was seen earlier this week. Likely ETH/USD is now ready to move higher and continue the overall recovery from the massive drop seen last Friday. 

Ethereum Price Analysis: ETH swiftly retests $3,900, reversal to the upside to follow? 1
Cryptocurrency heat map. Source: Coin360

The crypto market overall has seen a decline over the last 24 hours. Bitcoin lost 1.1 percent, while Ethereum 2.91 percent. Meanwhile, Terra (LUNA) is the worst performer, with a loss of 10.93 percent.

Ethereum price movement in the last 24 hours: Ethereum declines back to $3,900

ETH/USD traded in a range of $3,889.87 – $4,227.11, indicating a moderate amount of volatility over the last 24 hours. Trading volume has increased by 2.34 percent, totaling $26.75 billion, while the total market cap trades around $479.8 billion, resulting in a market dominance of 21.39 percent.

ETH/USD 4-hour chart: ETH looks to reverse?

On the 4-hour chart, we can see the Ethereum price finding support at $3,900 and quickly rejecting further downside, likely meaning a reversal to the upside should follow today.

Ethereum Price Analysis: ETH retests $3,900, reversal to the upside to follow?
ETH/USD 4-hour chart. Source: TradingView

Ethereum price has continued to trade in a relatively large range over the past week. After spiking to $3,600 last Friday, ETH/USD saw a recovery to $4,500 this week.

However, further upside could not be reached, leading to another selloff on Thursday. Yesterday, the bearish momentum continued, leading ETH to retest the previous low of around $3,900 overnight.

As soon as the support was reached, rejection for further downside was seen, returning the Ethereum price above $4,000. Since then, ETH/USD has seen sideways movement as bulls likely prepare to recover even more.

Ethereum Price Analysis: Conclusion 

Ethereum price analysis is bullish today as any further downside was rejected over the past hours after another push lower yesterday. Therefore, we expect ETH/USD to reverse and head higher again over the weekend.

While waiting for Ethereum to move further, see our articles on Pi Wallet, Electrum Wallet, and Celsius Wallet.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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