Ethereum Price Analysis: ETH Smashes Resistance, Dips Remain Supported

After a sharp rise in bitcoin price, Ethereum price joined the party and rallied above the $230.00 and $250.00 resistances. ETH tested $274.00 and it is currently correcting lower towards key supports.

Key Takeaways: ETH/USD

• Ethereum price surged higher in the past few sessions above $230.00 and $250.00 against the US Dollar.
• ETH/USD is trading above the $244.00 support and a bullish trend line on the 2-hours chart (data feed from Bitstamp).
• XLM and ETC performed really well, with gains more than 15%.

Ethereum Price Analysis

Earlier bitcoin price started a strong uptrend, and then bitcoin cash, ripple and Ethereum gained bullish momentum. ETH price formed a solid support base near the $200.00 level and recently climbed more than 25%.

Looking at the 2-hours chart, Ethereum price settled above the key $200.00 and $210.00 pivot levels. It sparked a sharp rally above the $230.00 resistance and the price settled well above the 50 simple moving average (2-hours, purple).

The upward move was such that the price even broke the $250.00 and $265.00 resistance levels. A new 2019 high was formed at $273.91 and recently the price started a downside correction.

It broke the $265.00 support and traded below the 23.6% Fib retracement level of the rally from $200.50 to $273.91.  However, the recent resistance zone near the $245.00 and $244.00 levels acted as a support and prevented further losses.

Besides, the price is trading above the $244.00 support and a bullish trend line on the same chart. If there is a break below the trend line support, the price could test the next support at $237.00 and the 50% Fib retracement level of the rally from $200.50 to $273.91.

The next important support is near the $228.00 level and another bullish trend line on the same chart. On the upside, Ethereum price could face resistance near the $260.00 and $265.00 levels. If ETH successfully climbs above $265.00 once again, there could be another strong rally above the $275.00 and $280.00 levels.

In the mentioned bullish case, the next stop for Ether buyers might be $292.00 or even $300.00 in the near term.