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