Ethereum price analysis: $225.00 major resistance
13:20, 7 February 2020
Ethereum has performed a major technical breakout above its key 200-day moving average as the altcoin space continues to surge higher alongside Bitcoin.
Ethereum technical analysis shows that the second-largest cryptocurrency by market capitalisation now faces strong upcoming resistance from the $225.00 resistance level.
ETH/USD medium-term price trend
The broader cryptocurrency market has continued to push higher this week, with ETH/USD bulls encouraged by a strong weekly and monthly price close above the pair’s 200-day moving average.
The recent breakout above the $193.00 level has seen the ETH/USD pair breakout above the $200.00 level, placing the emphasis on more upside gains.
Ethereum technical analysis shows that the recent rally could reach $225.00 resistance level before a meaningful technical pullback occurs.
The daily time frame also shows that an upcoming rally towards the $225.00 resistance level would help form a bullish inverted head-and-shoulders pattern.
Looking at the size of the pattern in question, it points to a potential medium-term rally in the ETH/USD pair towards the $350.00 level.
Watch out for a strong downward correction in the ETH/USD pair if bulls fail to overcome the $225.00 resistance barrier.
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ETH/USD short-term price trend
Ethereum technical analysis over the short term shows that the cryptocurrency is bullish while the price trades above the $175.00 level.
A small inverted head-and-shoulders pattern is currently playing out over the four-hour time frame at present, with the bullish pattern targeting the $218.00 level.
A degree of caution is advised, as bearish MACD price divergence has formed on the four-hour time frame.
The bearish MACD price divergence extends downs towards the $195.00 support and warns of a sharp pullback once the ETH/USD pair hits its expected upside target.
ETH/USD technical summary
Ethereum technical analysis suggests the recent rally in the ETH/USD pair could reach the $218.00 to $225.00 technical region before a meaningful downside pullback occurs.