Ethereum Price Analysis: ETH bottoms at $2,300, resistance found at $2,550?

• Ethereum price analysis is bearish today.
• Support was found at $2,300 yesterday.
• ETH/USD retraced to $2,550.

Ethereum price analysis is bearish today as we see the $2,550 resistance reject upside after retracement overnight. Therefore, ETH/USD is likely headed for another test of downside over the next 24 hours.

Cryptocurrency heat map. Source: Coin360

The market has seen bullish momentum return over the last 24 hours. The market leaders, Bitcoin and Ethereum, have gained 1.41 and 3.58 percent. Meanwhile, the rest of the top altcoins follow closely.

Ethereum price movement in the last 24 hours: Ethereum retests $2,300 and retraces to $2,550

ETH/USD traded in a range of $2,331.75 – $2,542.14, indicating substantial volatility over the last 24 hours. Trading volume has declined by 30.81 percent, totaling $21.56 billion. Meanwhile, the total market cap trades around $299.3 billion, resulting in a market dominance of 18 percent.

ETH/USD 4-hour chart: ETH finds resistance at $2,550

On the 4-hour chart, we can see the Ethereum price reacting from the $2,550 resistance today, likely leading to another test of downside later.

ETH/USD 4-hour chart. Source: TradingView

Ethereum price action has seen a strong decline this week. After previously retesting the $3,400 mark and forming a double top pattern, ETH/USD traded to $3,100 on Wednesday.

After a brief reaction higher, lower high was set below $3,300. From there, a very strong selloff began late on the 20th of January. Over the next days, ETH declined almost 30 percent, finding support at $2,300.

Since then, the Ethereum price has retested the support and retraced to $2,550. However, since we see a reaction lower around the resistance, ETH/USD could reverse again and test the downside later today.

Ethereum Price Analysis: Conclusion 

Ethereum price analysis is bearish today as we saw retracement to the $2,550 mark met with reaction. Likely ETH/USD will move to retest the downside again before more can be retraced.

While waiting for Ethereum to move further, see our articles on Coinbase Vault vs Wallet, Cardano price prediction, and crypto tax-loss harvesting.