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Ethereum price prediction: Ethereum reached $3,500, starts to consolidate in preparation for a retracement?

TL;DR Breakdown

  • ETH finds resistance at $3,500.
  • Current support at $3,200.
  • Next support at $3,000.

Today’s Ethereum price prediction is bearish as the previous bullish market momentum has slowed down, indicating exhaustion. Therefore, we expect ETH/USD to move lower over the next 24 hours, with the $3,000 mark acting as first support.

Cryptocurrency heat map. Source: Coin360

The overall cryptocurrency market is in the green today as markets retrace some of the gains seen over the past days. Bitcoin is down by 3 percent, while Ethereum around 3.5 percent. VeChain and Binance coin are among the worst performers, with a loss of over 5 percent. However, Chainlink has moved against the overall trend as it is up by 20 percent and trades close to the $50 mark.

Ethereum price prediction: Ethereum reached $3,500, starts to consolidate in preparation for a retracement? 

ETH/USD opened at $3,239 after setting a new all-time high just above $3,500 and rejecting further upside Yesterday. Overnight Ethereum price made another attempt to move higher; however, bears took control and quickly pushed ETH/USD back to the current support at $3,200. Therefore, the current several-day bullish momentum for Ethereum has likely come to an end, and we expect a much more substantial several-day retracement to be seen over the rest of the week.

Ethereum price movement in the last 24 hours

ETH/USD traded in a substantial range of $3,180 – $3,523, indicating huge volatility. Trading volume has remained relatively unchanged and totals $57.3 billion. The total market cap stands at $375.7 billion, resulting in market dominance of 16.66 percent. 

ETH/USD 4-hour chart – ETH trades sideways after peaking above $3,500

On the 4-hour chart, moving sideways for the past 24 hours, indicating that the current bullish upswing has ended.

ETH/USD 4-hour chart. Source: TradingView

The overall Ethereum price action has continued to gain ground over the past week. After establishing strong support of around $2,100 over the second half of April, ETH/USD made several retests and a slightly higher high on the 22nd of April, indicating a slowdown in the overall several week bullish momentum.

However, after retesting the $2,100 support area again, ETH/USD started setting higher lows at the end of April. By May, Ethereum broke above $2,800 and started gaining bullish momentum. Ethereum broke the $3,000 major price target without much hesitation on the 3rd of May, after which, a quick rally towards $3,450 was made. 

From there, Ethereum price retraced and made a final push higher above the $3,500 mark on the 4th of May. Right now, Ethereum has failed to move higher as the $3,450 mark resisted further upside. When considering that the Ethereum price has gained more than 70 percent since the last major swing low at $2,100, we can assume that the current bullish upswing has likely come to an end.

Therefore, ETH/USD should see retracement over the upcoming days, and it prepares to build the next major medium-term higher swing low. First support for ETH is seen at the $3,000 mark, meaning a further drop of around 6-7 percent from the current price. Likely a retracement of this magnitude will not be enough and ETH will retrace even lower to the $2,700-$2,800 previous resistance area.

Ethereum Price Prediction: Conclusion 

Ethereum price prediction is bearish as the several-day bullish momentum is exhausted and a much more substantial retracement is needed before Ethereum can go any higher. Therefore, we expect ETH/USD to move to at least $3,000 over the upcoming days.

While waiting for further Ethereum price action development, see our guides on Ethereum mining and free Ethereum. To learn more about crypto wallets, see our article on Bitcoin wallets for 2021.

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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