Ethereum Rally Seems Unstoppable: Here’s Why Its Different Than Bitcoin

Aayush Jindal

1 year ago

2 mins read

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Ethereum price rallied another 12% and surged above the $270 level against the US Dollar. ETH traded to a new 2020 high at $275 and it is likely to test $288 and $300 in the near term.

Ethereum extended its rise above the key $260 and $270 resistance levels against the US Dollar.
The bulls remain in charge and it seems like the price could soon hit $292 and $300.
There is a major bullish trend line forming with support near $268 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is lacking momentum, suggesting higher volatility and liquidity for Ether.

Ethereum Price Could Test $300

Recently, we saw a strong rise in Ethereum above the $240 and $250 resistance levels against the US Dollar. ETH even settled above the $250 level and the 100 hourly simple moving average.

Later, there was a consolidation phase above the $250 level for a few hours before a fresh increase. The price rallied another 12% and broke many key hurdles near the $260 and $265 levels.

Ethereum bulls had the upper hand and outpaced bitcoin. Moreover, there was a crucial break visible on the ETH/BTC chart, calling for a convincing uptrend above $250.

Finally, the price traded above the $270 level and formed a new 2020 high near $275. It is currently in a solid uptrend, with an initial support near the $270 level. Besides, there is a major bullish trend line forming with support near $268 on the hourly chart of ETH/USD.

The 23.6% Fib retracement level of the recent rally from the $252 low to $275 high is also near $270 to provide support. On the upside, the $275 level is an initial resistance. The first key resistance is near the $288 level.

If Ethereum climbs above the $288 level, there are high chances of it testing the $300 level in the near term.

Downsides Limited

If the price corrects lower, the trend line and $270 level might provide support. If there are more downsides, the next support is seen near the $264 level.

The 50% Fib retracement level of the recent rally from the $252 low to $275 high is at $264 to act as a major support. Overall, Ethereum remains well supported for more gains above the $275 and $280 levels in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is still in the bullish zone, with positive signs.

Hourly RSI – The RSI for ETH/USD is currently moving to and fro above the 70 level.

Major Support Level – $268

Major Resistance Level – $275

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.

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