ETH gradually building towards a massive breakout, $700 is nigh

December 6, 2020 Editor Ethereum 0

  • Ethereum is looking forward to a big breakout if the crucial hurdle at $620 is broken.
  • The IOMAP model validates the expected bull run after revealing the absence of substantial hurdles.

Ethereum has leaned to the bullish side despite the lack of price movement across the cryptocurrency market over the weekend. The smart contract token is still trading slightly under $620, but a bullish building momentum hints at an enormous breakout to $700.

Ethereum is battling one more critical hurdle before breaking out

Ether found support at $560 in conjunction with the hypotenuse of the ascending triangle. The reversal stepped above the 50 Simple Moving Average on the 4-hour chart, calling on the buyers to increase their positions.

At the time of writing, ETH/USD is pivotal at $600, while bulls are looking forward to a massive breakout above the x-axis. A colossal spike is expected to emanate from the triangle breakout, sending Ethereum to $700.

The Relative Strength Index validates the bullish momentum as it settles above the midline. The motion towards the overbought might call for more buy orders. If enough volume is created, Ethereum will gain momentum to confirm the triangle breakout.

ETH/USD 4-hour chart

IntoTheBlock’s IOMAP adds credibility to the anticipated bull run by revealing the absence of strong resistance zones. Buyers have one minor task; to overcome the little seller congestion between $600 and $618. Here, roughly 614,000 addresses previously purchased nearly 777,500 ETH.

Ethereum IOMAP chart

Ethereum IOMAP chart

On the downside, immense support is provided for the largest altcoin. It is doubtful that the decline will overshoot the buyer congestion area at $518 to $598. Here, approximately 791,000 addresses bought roughly 9.8 million ETH.

It is worth mentioning that the bullish narrative will be sabotaged if ETH/USD slices through the robust IOMAP support. The losses that may come into the picture are likely to refresh $540. Moreover, failing to close the day above $600 will either delay recovery or confirm the breakdown to $540.