We present algebraic conditions for characterizing three configurations of two ellipsoids in R3 that are the most relevant to collision detection: separation, external touching and overlapping. These conditions are given in terms of explicit formulae expressed by the subresultant sequence of the characteristic polynomial of the two ellipsoids and its derivative. For any two ellipsoids, the signs of these formulae can easily be evaluated to classify their configuration. Furthermore, based on these algebraic conditions, an efficient method is developed for continuous collision detection for two moving ellipsoids under arbitrary motion.