- Ethereum rebounds from last week’s support at $480 to almost testing the resistance at $600.
- A break above $600 is expected to elevate Ethereum above $625, and perhaps send it on a pathway to $700.
Ethereum has recovered significantly since last week’s dive to the support at $480. The weekend session was kind to other major cryptocurrencies too, with Bitcoin surging above $18,000. Meanwhile, Ether is trading at $580 amid a building bullish momentum.
Ethereum on the verge of a breakout to $62′
All technical indexes point towards Ethereum soaring to highs above $600 in the coming sessions. The Relative Strength Index has reinforced the bullish grip, as it grinds closer to the overbought region. The consistent rise from levels around 30 has called for an increase in buy orders.
ETH is also trading above the 50 Simple Moving Averaged. Note that the last time Ethereum exchanged hands under it, losses amounted to 11%. As long as the smart contract giant is above this key moving average, the path with the least resistance will remain upwards.
ETH/USD 4-hour chart
On the other hand, the gap made by the 50 SMA in the 4-hour time above the 100 SMA and 200 SMA, suggests that buyers have the upper hand. Trading above $600 is likely to encourage more buyers to join the market. If enough bullish pressure is created, Ethereum is will likely break above the target at $625 and focus on gains above $700.
On the flip side, it is worth mentioning that some delays may be encountered at $600. Perhaps enough selling pressure will build to stop the planned breakout to $625. A correction from the critical level might see Ethereum fall back to seek refuge at the 50 SMA. Other key support levels to keep in mind include 100 SMA at $515, $480, and 200 SMA at $465.
Ethereum intraday level
Spot rate: $587
Percentage change: 2%
Relative change: 10