Ethereum bounces off last week’s support at $ 485 to the nearest resistance of $ 600. A break above $ 600 is expected to lift Ethereum above $ 630 and possibly send it to $ 700.
Ethereum has recovered significantly since its plunge last week towards support at $ 480. The weekend session was kind to other major cryptocurrencies as well. As Bitcoin surged above $ 18,000, Ether is trading at $ 580, showing a growing bullish momentum.
Ethereum on the verge of breaking through to $ 630
All technical indices indicate that Ethereum will soar to highs above $ 600. The relative strength index has strengthened its bullish grip as it approaches the overbought area. Consistent gains from around RSI 30 levels caused an increase in buy orders.
ETH is also trading above 4H, 50 moving average. Note that the last time Ethereum went below this moving average, the loss was 11.5%.
As long as the smart contract giant stays above this key moving average, the path to gain more high ward momentum will be increased with the least resistance.
On the other hand, the gap made by 50 SMA in 4 hours above 100 SMA and 200 SMA suggests that buyers have an edge.
Trading above $ 600 is likely to encourage more buyers to join the market. If enough bullish pressure is created, Ethereum is expected to break above the $ 625 target and focus on gains above $ 700.
On the other hand, some delays can occur at $ 600 before moving more up.
There may be enough selling pressure to stop the planned breakout at $ 630. A correction from the critical level could cause Ethereum to fall back to find a haven at the 50 SMA level. Other key support levels to keep an eye on are 100 SMA at $ 520, $ 485, and 200 SMA at $ 460.