Ethereum Just Saw Key Technical Correction, Why ETH Rally TO $ 700

Ethereum rallied above $ 650 and $ 660 before curling lower against the US Dollar. The price of ETH is likely to continue to be supported and could start a fresh rise toward $ 700.

  • ETH’s price gained speed after it broke the $ 650 resistance against the US Dollar.
  • The price currently corrects lower at $ 670 and trades well above the 100 simple (4-hour) moving average.
  • A key bullish trend line is forming with support near $ 624 on the 4-hour chart of ETH / USD (data feed via Kraken).
  • The pair could rise again as long as it trades above the $ 620 support zone.

Ethereum Ether Remains In Uptrend

This past week, bitcoin and ethereum saw a significant rally above $ 600 and $ 20,000 respectively against the US Dollar. The ETH price even surpassed the $ 630 resistance zone and settled well above the 100 simple (4-hour) moving average.

The Ether price gained speed above the $ 650 resistance and was trading to a new year high above $ 670. Recently, a downside correction was below the $ 660 and $ 650 levels.

The price broke the 50% Fib level at the recent rally from the $ 632 swing low to $ 660 swing high. Currently, the bears are trying to cut handicap under a large contracting triangle backed up near $ 645 on the 4-hour chart of ETH / USD.

The next key support is near the $ 640 level. It’s close to the recent rally’s 76.4% Fib score level from the $ 632 swing low to $ 660 swing high.

Source: ETHUSD on TradingView.com

On the upside, initial resistance is close to the $ 660 level. The first major resistance is near the upper trend line of the triangle at $ 665. A successful closure above the $ 660 and $ 665 level may be open the doors for more than $ 670. The next big stop for the bulls could be $ 700.

Ether Supported Dips (ETH)?

If Ethereum fails to clear the $ 660 and $ 665 resistance levels, there is a risk of a short-term decline. Initial support is close to the $ 640 level.

Main support is forming near the $ 620 level. There is also a key bullish trend line forming with support near $ 624 on the same chart. Any further losses could lead the price toward $ 600.

Technical Indicators

4 hours MACD – The MACD for ETH / USD is slowly gaining momentum in the bearish zone.

4 hrs RSI – The RSI for ETH / USD is still well above the 50 level.

Great Support Level – $ 620

Great Resistance Level – $ 665

Source