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.
Technical Indicators
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
