Ethereum ready for retracement due to $3.5K resistance

Ethereum price prediction summary

• Ethereum price prediction indicates sellers have engulfed the market.
• ETH/USD saw reversal overnight.
• Ethereum still faces $3,500 resistance.

The bulls have run out of steam, and a significant reversal has been observed following a brief advance above $3,500 yesterday. As a result, we anticipate ETH/USD to fall over the next 24 hours as bears remain in control.

Over the previous 24 hours, the entire market fluctuated. Bitcoin gained 0.7 percent while Ethereum dropped 2.02 percent. Meanwhile, Shiba Inu (SHIB) is still the greatest gainer, with a rise of nearly 65%.

Ethereum price movement in the last 24 hours: Ethereum reverses again after a brief test above $3,500

In the one-day chart, ETH/USD is trading in a range of $3,354.47 – $3,541.45, which suggests little volatility over the previous 24 hours. Trading volume has increased by just 0.89 percent while the overall market cap trades at around $394 billion, giving it a market dominance of 18.8 percent.

The two Fibonacci retracement levels at 38% and 61.8% will act as crucial support levels. However, if the bulls cannot break the current resistance zone (marked in orange on the daily chart), they will likely not attempt to break the 38% retracement level. In any case, as long as Ethereum price ETH/USD approaches $3,500, the resulting decline could be steep.

ETH/USD 4-hour chart: ETH to retrace further?

We can see the Ethereum price retracing from $3,500 on the 4-hour chart, suggesting that bulls are exhausted.

ETH/USD 4-hour chart. Source: TradingView

On the first days of October, the ethereum price has shown considerable bullish momentum. After forming a consolidation at the end of September with the $2,750 as support and $3,150 as resistance, ETH/USD hit an all-time high on October 1.

The price then moved to another significant barrier at $3,500, where the existing consolidation had been established. ETH began rising again yesterday following a brief retracement on Monday.

The price of Ethereum (ETH) has yet to reach the $3,500 mark, suggesting that bulls are still worn out. The price dropped lower to the previous local low overnight, with more downside predicted.

Ethereum Price Prediction Conclusion 

The bulls have been exhausted after another attempt to break the $3,500 barrier. As a result, ETH/USD will most likely resume its decline today and see further buying pressure return to the market.