TA: Why Ethereum Could Rally Above $750, Key Uptrend Support Intact - SMARTNAIRA

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Tuesday 29 December 2020

TA: Why Ethereum Could Rally Above $750, Key Uptrend Support Intact

Ethereum started a fresh increase from the $700 zone against the US Dollar. ETH price retested the $745 resistance and it is likely to attempt an upside break above $750.

  • Ethereum remained well bid above $695 and it climbed back above $720.
  • The price is now trading well above $720 and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $720 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to continue higher above the $745 and $750 resistance levels in the near term.

Ethereum Price is Gaining Momentum

There was a minor downside correction in Ethereum below the $720 support level. However, dips were limited below the $700 level. ETH price remained well bid above $695 and the 100 hourly simple moving average.

A swing low was formed near $693 before the price climbed back above $720. The last swing low was near $703 before the main upward move above the $730 level. The price even broke the $740 level, but it struggled to clear the $745 resistance level.

A high was formed near $747 and the price is currently correcting lower. It broke the $735 level. There was also a break below the 23.6% Fib retracement level of the recent rise from the $703 swing low to $747 high.

Ethereum Price

The first major support is near the $725 level. There is also a key bullish trend line forming with support near $720 on the hourly chart of ETH/USD. The trend line coincides with the 50% Fib retracement level of the recent rise from the $703 swing low to $747 high.

On the upside, the $740 and $745 levels are important hurdles. Once there is a close above the $750 level, ether price is likely to accelerate higher. The next major resistance on the upside might be $780. Any further gains could lead the price towards the $800 level.

Dips Supported in ETH?

If ethereum fails to clear the $745 hurdle, it could correct lower. An initial support on the downside is near the $725 pivot level, followed by $720.

A downside break below the trend line support could lead ether price towards the $700 support zone and the 100 hourly SMA in the near term.

Technical Indicators

Hourly MACD The MACD for ETH/USD is showing positive signs in the bullish zone.

Hourly RSI The RSI for ETH/USD is currently sliding towards the 50 level.

Major Support Level – $720

Major Resistance Level – $745



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