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

Aayush Jindal

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.