Ethereum Just Saw Key Technical Correction, Why ETH Could Rally To $700

Ethereum rallied above $650 and $660 before correcting lower against the US Dollar. ETH price is likely to remain supported and it might start a fresh increase towards $700.

  • ETH price gained pace after it broke the $650 resistance against the US Dollar.
  • The price is currently correcting lower from $670 and trading well above the 100 simple moving average (4-hours).
  • There is a key bullish trend line forming with support near $624 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair could rise again as long as it is trading above the $620 support zone.

Ethereum’s Ether Remains In Uptrend

This past week, bitcoin and ethereum saw a significant rally above $600 and $20,000 respectively against the US Dollar. ETH price even surpassed the $630 resistance zone and settled well above the 100 simple moving average (4-hours).

Ether price gained pace above the $650 resistance and it traded to a new yearly high above $670. Recently, there was a downside correction below the $660 and $650 levels.

The price broke the 50% Fib retracement level of the recent rally from the $632 swing low to $660 swing high. At the moment, the bears are attempting a downside break below a major contracting triangle with support near $645 on the 4-hours chart of ETH/USD.

The next key support is near the $640 level. It is close to the 76.4% Fib retracement level of the recent rally from the $632 swing low to $660 swing high.

Source: ETHUSD on TradingView.com

On the upside, an initial resistance is near the $660 level. The first major resistance is near the triangle upper trend line at $665. A successful close above the $660 and $665 level may possibly open the doors for more upsides above $670. The next major stop for the bulls could be $700.

Dips Supported in Ether (ETH)?

If Ethereum fails to clear the $660 and $665 resistance levels, there is a risk of short-term decline. An initial support is near the $640 level.

The main support is forming near the $620 level. There is also a key bullish trend line forming with support near $624 on the same chart. Any more losses could lead the price towards $600.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.

4 hours RSI – The RSI for ETH/USD is still well above the 50 level.

Major Support Level – $620

Major Resistance Level – $665

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