TA: Ethereum Holds Strong Above $600, Why ETH Could Surge Above $620
Ethereum started a strong increase and broke the $600 resistance against the US Dollar. ETH price is up over 4% and it could even surge above $625.
- Ethereum remained in a positive zone and climbed above the $600 resistance level.
- The price traded close to the $620 level (as discussed yesterday) and settled above the 100 hourly simple moving average.
- There is a key rising channel forming with support near $595 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue higher above the $620 and $622 levels in the near term.
Ethereum Price is Showing Positive Signs
Yesterday, we discussed the chances of more upsides in Ethereum towards the $620 resistance. ETH price did gain bullish momentum above the $585 and $600 resistance levels.
It traded close to the $620 resistance and settled above the 100 hourly simple moving average. A high is formed near $618 and ether is showing positive signs similar to bitcoin. It is currently consolidating gains and trading near the $607 level.
There was a minor break below the 23.6% Fib retracement level of the recent increase from the $572 swing low to $618 high. On the downside, there are many supports forming, starting with the $600 level.
Source: ETHUSD on TradingView.com
The first key support is near the $595 level. There is also a key rising channel forming with support near $595 on the hourly chart of ETH/USD. The channel support is close to the 50% Fib retracement level of the recent increase from the $572 swing low to $618 high.
On the upside, ether is facing hurdles near the $618 and $620 levels. A clear break above the recent high and $620 might spark a larger upward move. The next stop for the bulls could be $635 or even $642 in the near term.
Dips Supported in ETH?
If ethereum fails to clear the $618 and $620 resistance levels, there could be a minor downside correction. The channel support at $595 holds the key.
A downside break below the $600 level and the channel support could lead the price towards the $580 support zone. Any further losses might call for a test of the $570 level or the 100 hourly simple moving average.
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently near the 60 level.
Major Support Level – $595
Major Resistance Level – $620