Technically, the daily chart indicators moved in the bullish territory.
ETH/USD to Continue Higher
This past week, there were sharp gains in ETH/USD as the pair gained more than 20 percent from the $499.29 swing low. It surpassed the $600.00 level before trading to a new monthly high at $630.20.
Similarly, ETH/BTC started an upward move and broke the 0.0650BTC and 0.0680BTC resistance levels. The current formation indicates more gains in the near term toward the 0.0700BTC resistance.
Let’s start with the daily chart of ETH/USD to understand the current bullish trend from the $500.00 swing low. The pair formed a strong support base near $360.00 and moved higher. During the upward move, it broke a crucial bearish trendline with resistance at $510.00.
As a result, there was a sharp bullish wave toward the $600.00 level. Ether successfully broke the 38.2 percent Fibonacci retracement level of the last drop from the $981.64 high to $359.33 low. The price traded as high as $630.20 and is currently consolidating gains.
To the topside, the next major hurdle awaits at $640.00. Should Ether buyers succeed in pushing the price above the mentioned hurdle, there could be another upsurge toward the $700.00 barrier.
An intermediate resistance is around the 50 percent Fibonacci retracement level of the last drop from the $981.64 high to $359.33 low at $670.00.
Dropping down to the 2-hour chart of ETH/USD, there are two bullish trendline with support near $590.00. On the upside, there is a connecting bearish trendline with resistance at $610.00.
Therefore, Ether may well make the next move either above $610.00 or below $590.00. If it remains above, the price will most likely test $640.00. On the other hand, a downward break below $590.00 could initiate an extended correction toward $550.00.