Ethereum on the cusp of a massive breakout to $625 if this key hurdle is broken

By John Isige
Published December 2, 2020 Updated December 2, 2020
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Ethereum on the cusp of a massive breakout to $625 if this key hurdle is broken

By John Isige
Published December 2, 2020 Updated December 2, 2020
  • Ethereum lifted to new yearly highs at $636 but corrected under $600 to seek formidable support.
  • Ethereum’s short-term analysis is bullish, where a daily close above $600 could see it resume the uptrend to $700.

The smart contract giant is currently playing defense mechanism after correcting from the recent new yearly high at $636. The flash spike above $600 on Tuesday surged above the previous high at $625 but failed to sustain the uptrend toward $700. Ethereum is teetering at $592 at the time of writing amid calls for more declines eyeing $500.

Ethereum could engage reverse gears

For now, holding above the short term support at $575 is key to resuming the uptrend. The smart contract token must also hold the 50 Simple Moving Average to be able to avert the looming danger of a retreat to $500.

If Ethereum closed the day above $600, it might encourage more buyers to join the market. A break above the double-top pattern could lift Ether in the direction of $700. Meanwhile, the short term bullish momentum is given credence by the Relative Strength Index, as it rebounds heating to the overbought region.

ETH/USD 4-hour chart

E/USD price chart
ETH/USD price chart by Tradingview

The double-top pattern could give credibility to a bearish narrative, leading to a massive correction below $500. This pattern is used in technical analysis to signal a possible correction after an asset hits the same peak twice without sustaining an uptrend beyond it. A double-top pattern highlights the presence of immense selling pressure.

On the downside, traders should keep in mind other key levels including the 100 SMA and $500. A drop under $500 is doubtful based on the bullish nature of the cryptocurrency market as the year comes to an end. However, if push comes to shove the 200 SMA will come in handy slightly above $475.

Ethereum intraday levels

Spot rate: $595

Percentage change: 1.8%

Relative change: 10

Trend: Short term bullish bias

Volatility: High

 

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1164 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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