TA: Ethereum Consolidates above $640, Why Rally Isn’t Over Yet

Aayush Jindal

4 years ago

2 mins read

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Ethereum traded to a new monthly high above $675 against the US Dollar. ETH price is currently correcting gains, but dips are likely to be limited below $630 in the near term.

Ethereum gained bullish momentum after it broke the $620 resistance level.
The price surged towards the $675 resistance and settled well above the 100 hourly simple moving average.
There is a major bullish trend line forming with support near $638 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is currently consolidating gains above $640 and it could resume its upward move.

Ethereum Price Holding Gains

Yesterday, there was a massive upward move in bitcoin, Ethereum, ripple and other major altcoins. ETH cleared the key $620 resistance level and rallied above the $635 swing high.

As a result, there was a strong surge and the price broke the $650 resistance. Ether traded to a new monthly high at $676 and settled well above the 100 hourly simple moving average. Recently, there was a downside correction below the $650 level.

However, the bulls remained active above the $630 and $635 levels. A low is formed near $628 and the price is currently consolidating gains. It recovered above the $640 level. There was also a break above the 23.6% Fib retracement level of the recent decline from the $676 high to $628 swing low.

Source: ETHUSD on TradingView.com

It is now facing a strong resistance near the $652 level. The 50% Fib retracement level of the recent decline from the $676 high to $628 swing low seems to be acting as a major resistance.

A clear break above the $652 resistance level could open the doors for a fresh rally. The next major resistance is near the $658 level, followed by $675. Any more upsides may possibly call for a test of the $700 level.

More Dips in ETH?

If ethereum continues to move down, the trend line support and $640 could play a major role. The next key support is near the $630 level.

A downside break below the $630 support level could lead the price towards the $620 support. The 100 hourly simple moving average is also near $620 to provide support.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently close to the 50 level.

Major Support Level – $630

Major Resistance Level – $652

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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