Ethereum gains a strong bullish momentum above the $200 resistance against the US Dollar, similar to bitcoin. ETH price is likely to continue higher towards $250 in the near term.

ETH price climbed higher significantly and settled above $200-$210 high against the US Dollar.

The price even broke the $225 resistance and traded to a new 2020 high near $230.

There is a key contracting triangle forming with support near $225 on the 4-hours chart of ETH/USD (data feed via Kraken).

The pair could correct a few points, but the bull are likely to remain in control above $200-$210.

Ethereum Price Could Rally To $250

This past week, Ethereum started a strong increase above the $200 level and outpaced bitcoin against the US Dollar. ETH price surged above the $210 level and settled above the 100 simple moving average (4-hours).

It opened the doors for more gains and the price recently surpassed the $225 level. It traded to a new 2020 high at $230 and currently consolidating gains. An initial support on the downside is near the $225 level.

Besides, the 23.6% Fib retracement level of the recent rally from the $214 low to $230 high is also near $225. More importantly, there is a key contracting triangle forming with support near $225 on the 4-hours chart of ETH/USD.

On the upside, the $230 level is an initial hurdle for Ethereum bulls. A clear break above the $230 level could set the momentum for a larger rally towards the $250 resistance area.

An intermediate hurdle for the bulls is near the $240 level. Any further gains could lead the price towards the $262 and $265 resistance levels in the near term.

Downsides Could Be Limited

On the downside, the first support is seen visible near the $225 level. If Ethereum fails to stay above the contracting triangle support, it could extend its correction towards the $220 level.

An intermediate support is near the $221 level. It represents the 50% Fib retracement level of the recent rally from the $214 low to $230 high.

Any further losses may perhaps lead the price towards the $200 support area and the 100 simple moving average (4-hours). The overall price action is very bullish and suggesting more gains above the $230 and $240 levels in the coming sessions.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is now gaining pace in the bullish zone.

4 hours RSI – The RSI for ETH/USD is currently well above the 70 level.

Major Support Level – $220

Major Resistance Level – $230