Ethereum Likely Gearing For Strong Surge Above $250: Rally Isn’t Over Yet

Aayush Jindal

1 year ago

2 mins read

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Ethereum is trading nicely above the $240 and $230 support levels against the US Dollar. ETH price seems to be preparing for a strong surge above the $250 and $255 resistance levels.

ETH price is trading in an uptrend above the $230 support zone against the US Dollar.
A successful close above the $250 level could trigger a significant upward move.
There is a major contracting triangle forming with resistance near $245 on the 4-hours chart of ETH/USD (data feed via Kraken).
The pair could also correct lower, but dips are likely to remain bid near $230 and $228.

Ethereum Price Could Rally Again

This past week, Ethereum spiked above the $250 resistance level against the US Dollar. ETH price traded as high as $253 and later started a downside correction below the $240 support.

The price spiked below the $235 and $230 levels. However, it found a strong support near $225 and the 100 simple moving average (4-hours). Ether climbed back above the $235 level and recovered most its losses.

It traded above the 50% Fib retracement level of the downward move from the $253 high to $230 swing low. It is now struggling to clear the $244 and $245 resistance levels. There is also a major contracting triangle forming with resistance near $245 on the 4-hours chart of ETH/USD.

The 61.8% Fib retracement level of the downward move from the $253 high to $230 swing low is also near $245. Therefore, if Ethereum clears the $245 resistance, it could continue to rise above the $250 resistance level.

An immediate resistance is near the $253 high, above which there are high chances of a sustained upward move towards the $260 and $265 levels in the near term.

More Downsides in ETH?

If Ethereum fails to continue above the $245 and $250 resistance levels, there are chances of another drop. An initial support is near the $232 level.

The main support is near the $230 level and the 100 simple moving average (4-hours). If the price fails to stay above the $230 support, the bears are likely to take control and ether might dive towards the $220 level.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is about to move into the bullish zone.

4 hours RSI – The RSI for ETH/USD is currently well above the 50 level.

Major Support Level – $230

Major Resistance Level – $250

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Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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