TA: Why Ethereum (ETH) Looks Set For Another Leg Higher Over $650 - SMARTNAIRA

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Sunday, 20 December 2020

TA: Why Ethereum (ETH) Looks Set For Another Leg Higher Over $650

Ethereum corrected lower, but it remained well bid above $625 against the US Dollar. ETH price is currently rising and it looks set for a surge above the $650 resistance.

  • Ethereum is trading nicely above the $620 and $630 support levels.
  • The price is back above the $640 level and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $625 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is showing a lot of positive signs and it could soon rally above $650.

Ethereum Price is Showing Positive Signs

After struggling to clear the $660 resistance level, Ethereum’s ether corrected lower below the $650 level. ETH traded below the $640 level and it even spiked below $630.

However, the bulls were able to protect the $620 support zone. A low is formed near $622 and the price is currently rising. It recovered above the $630 and $635 levels. There was also a break above the 50% Fib retracement level of the recent decline from the $660 swing high to $622 low.

Ether is now back above the $640 level and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $625 on the hourly chart of ETH/USD.

Ethereum Price

Source: ETHUSD on TradingView.com

On the upside, an initial resistance is near the $645 level. It is close to the 61.8% Fib retracement level of the recent decline from the $660 swing high to $622 low. The main resistance is near the $660 level and a connecting bearish trend line on the same chart.

A clear break above the $660 resistance level could open the doors for more upsides above $670. The next major target for the bulls could be $700 in the near term.

Fresh Dip in ETH?

If ethereum struggles to gain pace above the $650 resistance, it could gain correct lower. The first major support on the downside is near the $630 level.

The main breakdown support is now forming near the trend line and $620. Any more losses may possibly call for a test of the $600 handle in the coming sessions.

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 just above the 50 level.

Major Support Level – $620

Major Resistance Level – $660



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