Ethereum price defends critical support level and prepares for a rebound to $700

• Ethereum price dropped below $600 briefly before recovering.
• The bulls have defended a crucial support level on the daily chart to keep the uptrend alive.

Ethereum has been notably weaker than Bitcoin in the past two weeks. However, its on-chain metrics continue strengthening. The Eth2 deposit contract holds close to 2 million ETH now, which represents around 1.75% of the total supply and are worth $1.2 billion at current prices. 

Ethereum price poised for a rebound to $700

On the daily chart, the 26-EMA has been an accurate support level on the way up. Bulls have defended this trendline since October 16 and Ethereum price has just touched it again but didn’t pierce through it. 

ETH/USD daily chart

Successfully closing above the 26-EMA on the daily chart would be a bullish indicator. The next resistance level before $700 is the 2020-high at $676. The In/Out of the Money Around Price (IOMAP) chart shows only one crucial resistance area between $633 and $652.

ETH IOMAP chart

A breakout above that significant resistance range can quickly push Ethereum price towards $700 as the IOMAP chart shows no more significant resistance on the way up. 

However, the chart also indicates that support below is weaker than the resistance, which means that a rejection from the critical resistance area between $633 and $652 could push Ethereum down to the 26-EMA again, at $593.