Ethereum gains a strong bullish momentum above the $ 200 resistance against the US Dollar, similar to bitcoin. ETH price is likely to continue higher towards $ 250 in the near term.
- ETH price climbed higher significantly and settled above $ 200-$ 210 high against the US Dollar.
- The price even broke the $ 225 resistance and traded to a new 2020 high near $ 230.
- There is a key contracting triangle forming with support near $ 225 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair could correct a few points, but the bull are likely to remain in control above $ 200-$ 210.
Ethereum Price Could Rally To $ 250
This past week, Ethereum started a strong increase above the $ 200 level and outpaced bitcoin against the US Dollar. ETH price surged above the $ 210 level and settled above the 100 simple moving average (4-hours).
It opened the doors for more gains and the price recently surpassed the $ 225 level. It traded to a new 2020 high at $ 230 and currently consolidating gains. An initial support on the downside is near the $ 225 level.
Besides, the 23.6% Fib retracement level of the recent rally from the $ 214 low to $ 230 high is also near $ 225. More importantly, there is a key contracting triangle forming with support near $ 225 on the 4-hours chart of ETH/USD.
On the upside, the $ 230 level is an initial hurdle for Ethereum bulls. A clear break above the $ 230 level could set the momentum for a larger rally towards the $ 250 resistance area.
An intermediate hurdle for the bulls is near the $ 240 level. Any further gains could lead the price towards the $ 262 and $ 265 resistance levels in the near term.
Downsides Could Be Limited
On the downside, the first support is seen visible near the $ 225 level. If Ethereum fails to stay above the contracting triangle support, it could extend its correction towards the $ 220 level.
An intermediate support is near the $ 221 level. It represents the 50% Fib retracement level of the recent rally from the $ 214 low to $ 230 high.
Any further losses may perhaps lead the price towards the $ 200 support area and the 100 simple moving average (4-hours). The overall price action is very bullish and suggesting more gains above the $ 230 and $ 240 levels in the coming sessions.
4 hours MACD – The MACD for ETH/USD is now gaining pace in the bullish zone.
4 hours RSI – The RSI for ETH/USD is currently well above the 70 level.
Major Support Level – $ 220
Major Resistance Level – $ 230