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