Ethereum price surged more than 12% and broke many hurdles near $230 and $240 against the US Dollar. ETH is likely to continue higher towards the $300 handle in the near term.
- Ethereum declined below the $225 and $220 support levels against the US Dollar.
- The key targets of $240 and $250 were achieved (as discussed in the weekly forecast).
- There was a break above a major contracting triangle with resistance near $223 on the hourly chart of ETH/USD (data feed via Kraken).
- Bitcoin price is back above the $10,000 resistance and traded to a new 2020 high above $10,200.
Ethereum Price Starts Strong Increase
After a short term downside correction, Ethereum found support near the $218 area against the US Dollar. A support base was formed above $220 and recently ETH price started a fresh increase.
There was a sharp upward move above the $225 and $230 resistance levels. The bulls even push the price above the $230 swing high and the 100 hourly simple moving average.
During the rise, there was a break above a major contracting triangle with resistance near $223 on the hourly chart of ETH/USD. Ethereum cleared the $240 resistance and traded close to the $250 area.
A new 2020 high is formed near $248 and the price is currently correcting gains. An initial support is near the $242 level. It coincides with the 23.6% Fib retracement level of the recent rally from the $218 low to $248 high.
On the upside, the $248 and $250 levels are initial hurdles for Ethereum bulls. If they push the price above the $250 barrier, it could set the pace for more upsides towards $265. The next major resistance above $265 is seen near the $300 level.
Dips Remain Supported
If there is a downside correction, the bulls are likely to remain active above the $230 level. The first key support is near the $235 and $233 levels.
Besides, the 50% Fib retracement level of the recent rally from the $218 low to $248 high is at $233. Any further losses may perhaps lead Ethereum price towards the $225 support area and the 100 hourly SMA.
Overall, the bulls remain in control above $230 and $240. Therefore, if the price surges above the $250 level, the bulls are likely to aim a test of the $300 mark in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now strongly in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting lower from the overbought zone.
Major Support Level – $233
Major Resistance Level – $250