Ethereum price started a strong rally above $178.20 and $188.00. ETH corrected lower recently, but downsides remain limited and the price is likely to trade higher towards $200.00 or $204.00.
- Ethereum price reacted to the upside after it broke $178.20 and $182.50.
- A crucial breakout pattern is forming with resistance near $193.20 on the 30-minute chart.
- ETH price could start a fresh increase once it surpasses $194.00 and $195.00.
Ethereum Price Analysis (ETH to USD)
After bitcoin’s sharp rally above $7,000, Ethereum started a steady rise. The bulls gained momentum after the price cleared the key $178.20 and $182.50 resistance levels. ETH rallied above the $190.00 level and even traded to a new monthly high above the $200.00 level.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair traded as high as $203.60 and recently started a downside correction. There was a sharp decline below the $192.50 support and the 25 simple moving average (30-min).
The price even broke the $185.00 level and traded as low as $183.50. The price found support and it is currently moving higher above $187.00, and the 23.6% Fib retracement level of the recent decline from the $201.16 high to $183.50 low.
Ether even traded above $190.00 and the 25 simple moving average (30-min), but it faced resistance near the $193.00 level. It seems like the 50% Fib retracement level of the recent decline from the $201.16 high to $183.50 low is acting as a resistance.
Besides, there is a crucial breakout pattern forming with resistance near $193.20 on the same chart. If there is an upside break above $193.20 and $194.00, the price is likely to climb above $195.00 and $200.00 in the next two sessions.
Alternatively, if the price fails to climb above $194.00 or $195.00, it might extend the downside correction towards the $183.50 support. The next main support is at $178.20, below which Ethereum price may move back in a bearish zone. Overall, ETH price is likely to resume its upward move as long as the $178.20 support is intact.
The market data is provided by TradingView, Bitfinex.