Ethereum is up over 10% and it broke the $ 700 resistance zone against the US Dollar. ETH price is consolidating gains and it could rally further to $ 750 and $ 765.
- Ethereum started a strong increase above the $ 650 and $ 680 resistance levels.
- The price is now trading nicely above $ 700 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $ 655 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its upward move towards the $ 750 and $ 765 resistance levels.
Ethereum Price Settles Above $ 700
After forming a support base above $ 620, Ethereum saw a strong increase above the $ 650 resistance level. ETH price remained well above $ 650 level and settled nicely above the 100 hourly simple moving average.
During the increase, there was a break above a rising channel with resistance near $ 662 on the hourly chart of ETH/USD. It opened the doors for more upsides above the $ 680 and $ 700 resistance level. Ether price traded to a new yearly high at $ 717 before starting a consolidation phase (similar to bitcoin).
It is currently consolidating above the $ 700 level. It even tested the 23.6% Fib retracement level of the recent increase from the $ 663 swing low to $ 717 high.
Source: ETHUSD on TradingView.com
There are many supports forming on the downside, starting with $ 690. It is close to the 50% Fib retracement level of the recent increase from the $ 663 swing low to $ 717 high. On the upside, the $ 718-$ 720 resistance zone is a major hurdle for the bulls.
A clear break above the $ 720 resistance will most likely open the doors for more upsides. The next major resistance is near the $ 750 level, above which ether could test $ 765.
Dips Supported in ETH?
If ethereum fails to surpass the $ 718 and $ 720 resistance levels, it could correct lower. An initial support on the downside is near the $ 695 level.
The first major support is near the $ 690 level. The main support is now forming near the $ 650 level. There is also a key bullish trend line forming with support near $ 655 on the on the same chart.
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently well above the 50 level.
Major Support Level – $ 690
Major Resistance Level – $ 720