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Ethereum’s Key Uptrend Support At $700 Remains Intact: Analysis

12/30/2020

Ethereum’s key uptrend support at the $700 level remained intact which is why the price could soon rally again above $750 so let’s find out more in today’s Ethereum news.

ETH started a fresh increase from the $70 zone against the US dollar with the price retesting the $745 level and being able to break above $750 still. ETH remained well bid above the $695 level and climbed back above $720 but now the price is trading above $720 and the 100 hourly simple moving average. There’s also a key bullish trend line forming with the support near $720 on the hourly charts of the pair and will likely continue higher above the $750 resistance zone in the near-term.

ethusd
ETH/USD Chart By Tradingview

There was a smaller correction in ETH below the $720 support level but the dips were limited below the $700 price range as it remained well bid above $695 and the 100 hourly simple moving average. The swing low was formed close to the $693 level before the price managed to increase slightly and the last swing low was close to $703 before the main upwards movement above the $730 level. the price managed to break above $740 but struggled to clear the $745 resistance.

A new high was formed close to the $747 level and the price was correcting lower. It did break the $735 level and there was also a break below the 23.6% fib retracement from the rise at $703 swing low to the $747 high. The first major support was near the $725 level with a key bullish trend line forming at the $720 support zone on the hourly charts of the pair. the trend coincided with the 50% fib retracement level from the rise of the $703 swing low to the $747 high.

eth/btc
Image Courtesy of Mayne. Source ETHBTC on TradingView.

On the upside, the $740 and the $745 levels are major hurdles but once there’s a close above this level, the price could rally again higher. Ethereum’s key uptrend support was intact but the major resistance eon the upside could be set for $780. If ETH fails to clear the $745 hurdle, it could correct lower with initial support on the downside, nearing the $725 pivot level. a break below the trend line support could lead the price towards $700 and the 100 hourly SMA in the near-term.