Ethereum is finally out of the ‘crypt’ and back to a key bullish zone. This follows a magnificent bullish action not only this week but also from the beginning of January. The price has grown more than 38% in 2020 and the upside seems unstoppable.
The cryptocurrency has had its own fair share of up and downs but even bullish markets experience pullbacks too. The initial correction above the 50-day SMA was allowed the bulls to focus on higher levels including $160 and $170. However, the real ‘magic’ happened when Ether sprung above the confluence created by the 200-day SMA and the 50% Fibonacci retracement level taken between the last drop from $23119 to a low of $115.65.
ETH/USD daily chart
The rally in February emanates from trading above this moving average including the surge to $212 (new 2020 high). Ethereum has pulled back from the recent highs and is trading at $210. If the bulls push above the resistance at $212, there is a chance that Ethereum could gain momentum towards $220 and $230 resistance zones.
While the prevailing trend is strongly bullish, it is likely that Ethereum will run into intense resistance towards $300. Moreover, the RSI in the daily range shows Ethereum is getting more and more overbought. A situation that could soon result in a reversal.
To be on the safe side, the buyers need to establish strong support zones mainly above $200, precisely $210. This will allow them to focus on gathering more strength and creating more demand for the coin.
Ethereum Key Levels
Spot rate: $210.30
Relative change:
Percentage change:
RSI: Overbought conditions signal possible reversal.
Trend: Bullish
Support $200, $173.50
Resistance: $212 and $220
