Ethereum is surging and it recently broke the $215 and $220 resistance levels.
The price is now trading well above the $200 pivot level and the 100-day simple moving average.
There was a break above a major bearish trend line with resistance near $200 on the daily chart of ETH/USD (data feed via Kraken).
The pair is likely to continue higher towards the $240 and $250 resistance levels.
Ethereum Price Primary Target Hit
Yesterday, we discussed the chances of a strong rise in Ethereum above the $200 resistance against the US Dollar. ETH price did gain bullish momentum above $200 and surged more than 12%.
Bitcoin also rallied more than 15% above $8,000 and $8,500. It sparked more upsides in Ether above the $210 level and the price tested the first bullish target of $220 (as discussed in yesterday’s post).
During the rise, there was a break above the 50% Fib retracement level of the last key decrease from the $287 high to $90 swing low. Moreover, there was a break above a major bearish trend line with resistance near $200 on the daily chart of ETH/USD.
Ethereum Price
Ethereum is now trading nicely in a strong uptrend above the $220 level. An initial resistance on the upside is seen near the $240 level. It is close to the 76.4% Fib retracement level of the last key decrease from the $287 high to $90 swing low.
The next key resistance is near the $250 level (a multi-touch zone). If the bulls continue to gain strength, there are high chances of more upsides above the $240 and $250 resistance levels.
Chances of a Downside Correction?
If Ethereum fails to clear the $240 resistance level, there are slight chances of a downside correction. An initial support is near the $212 level.
The first major support is now near the $200 level and the same broken bearish trend line. If the price fails to stay above the key $200 support zone, there is a risk of a larger correction towards $185.
Technical Indicators
Daily MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Daily RSI – The RSI for ETH/USD is currently near the overbought levels.
Major Support Level – $200
Major Resistance Level – $250
Take advantage of the trading opportunities with Plus500
Risk disclaimer: 76.4% of retail CFD accounts lose money.