Ethereum Breaking This Single Level Will Spark a Parabolic Rally

Ethereum

Ethereum is gaining bullish momentum above $185 against the US Dollar. ETH is following bitcoin and it is likely to start a parabolic rally if it clears the $200 resistance.

Ethereum Price Gaining Bullish Momentum

Yesterday, we discussed the chances of a larger rally in Ethereum above $180 against the US Dollar. ETH price corrected a few points, but it remained well supported above the $175 support area.

The price followed a bullish path above the $180 level and the 100 hourly simple moving average. It surpassed the $188 resistance area and traded to a new weekly high near $193.

Recently, there was a downside correction below the $188 and $185 levels. Ethereum declined below the 50% Fib retracement level of the upward move from the $176 swing low to $193 high. However, the decline found support near the $182 level.

The 61.8% Fib retracement level of the upward move from the $176 swing low to $193 high also acted as a support. It seems like there is a key bullish trend line forming with support near $184 on the hourly chart of ETH/USD.

Ethereum Price

The pair is currently rising and trading with a bullish angle above the $185 level. On the upside, an initial hurdles are $188 and $190. A clear break above the $190 level might open the doors for a push towards the $195 level.

The main hurdle is still near the $200 handle, above which the bulls are likely to aim a larger rally towards the $225, $240 and $250 levels in the coming days.

Bearish Rejection?

Ethereum is clearly trading in a bullish trend above $182 and $180. If it fails to clear the $195 and $200 resistance levels, there are chances of a bearish reaction.

The main support on the downside is near the $175 level and the 100 hourly SMA, below which the price might decline towards the $165 support zone.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is currently gaining momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now well above the 50 level.

Major Support Level – $180

Major Resistance Level – $195

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