Ethereum [ETH] has surged to levels not seen since June 2018 as it broke several key resistance levels along the way. The latest parabolic rally has catapulted gains of 30.41% over the past week. The upcoming release of Ethereum 2.0 has proved to be a major catalyst driving the current rally.
The price climbed above $500 for the first time since May 2018. With this, the world’s largest altcoin broke out from a two-year range and has been demonstrating strong momentum. While a minor pullback saw Ethereum fall back through the first major resistance level to end the day at $570, however, it quickly rose back up.
At the time of writing, Ethereum was priced at $590.5 after a surge of 9.12% as it held a market cap of $67.04 billion and a 24-hour trading volume of $28.4 billion.
Ethereum [ETH] Daily Chart:
The daily moving averages on the daily Ethereum [ETH] chart depicted a strong possibility of an uptrend with very little resistance. The 50 DMA [Pink] underwent a bullish crossover with the 100 DMA [Purple] recently and has shown no signs of reversal yet. In fact, the increasing gauge between the two moving averages depicted a bullish phase for the coin.
The DMAs formed critical support points at level $418 and $398 respectively.
The Stochastic RSI climbed to the overbought zone, indicating that the price had established a local top and could be turned down from the current level. However, the Stochastic RSI does not have enough weight to affect the value of the coin
On a brighter note, the volume indicator [OBV] depicted that the increasing value of Ethereum was in sync with the rising volume, thus, strong yet consistent volumes behind the latest price surge.
Hence, if the strong momentum continues, ETH could aim for a breach of its overhead resistance of $619. If the coin surpasses this level, the next high time frame resistance levels are found at $714, and $784 respectively. As mentioned above, if the coin breaks $600, it would likely foray into the $700 to $900 range, considering the fact that there is very little resistance until the previously established all-time high.