Ethereum Price Analysis: ETH finds resistance below $3,200, slowly prepares to retrace?

TL;DR Breakdown

• ETH continued to rally yesterday.
• Resistance found below $3,200.
• ETH/USD set for a retracement.

Ethereum price analysis is bearish for the next 24 hours as further upside could not be reached over the last 24 hours after resistance was found below $3,200. Therefore, we expect ETH/USD to retrace later today and try to retrace some of the gains seen this week.

The cryptocurrency market trades with slightly bullish results over the last 24 hours. Bitcoin is up by 2.87 percent, while Ethereum is up by around 1.56 percent. Meanwhile, Dogecoin (DOGE) is among the best performers with more than 17 percent gain.

Ethereum price movement in the last 24 hours: Ethereum finds resistance below $3,200

ETH/USD traded in a range of $3,009.55 – $3,184.60, indicating mild volatility over the last 24 hours. Trading volume has remained flat and totals $31 billion. Meanwhile, the total market capitalization trades around $365.92 billion, resulting in market dominance of 20 percent.

ETH/USD 4-hour chart: ETH set for a retracement?

On the 4-hour chart, we can see the Ethereum price failing to move higher after reaching the $3,200 resistance, indicating an upcoming retracement over the next days.

Ethereum price action has moved with strong bullish momentum over the past weeks. After retesting major support around $1,725, ETH/USD started to rally and broke past the previous swing highs around $2,400 and $2,650.

This Ethereum price action development clearly indicates that the market structure has turned bullish once again, and we can expect a lot more upside to follow over the next weeks. However, currently, ETH has extended itself too far without a significant retracement.

Therefore, we expect ETH/USD to retrace early next week and test the previous resistance level as support. The first obvious price level to watch is the $2,900 mark, where the previous major swing high was located. If Ethereum finds support around this price level, we can expect further upside to follow by the end of next week, with the next upside target around $3,600.

Ethereum Price Analysis: Conclusion 

Ethereum price analysis is bearish for the next 24 hours as further upside could not be reached overnight after a test of the $3,200 resistance. Therefore, we expect ETH/USD to reverse later today and start retracing early next week.

While waiting for Litecoin to move further, read our articles on Bitcoin Futures, Physical Bitcoin, as well as Proof of Stake vs Proof of Work.

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.

Source: https://www.cryptopolitan.com/ethereum-price-analysis-2021-08-08/