This Scenario Could Trigger A New Ethereum Rally: Key Levels To Watch

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Ethereum is currently trading above the $205 and $208 support levels against the US Dollar. ETH price could start a strong increase if it clears the $215 and $216 resistance levels.Ethereum is showing a lot of positive signs above the key $205 support zone.The price is currently trading above $210 and it is well above the 100 hourly simple moving average.Yesterday’s major bullish trend line is active with support near $210 on the hourly chart of ETH/USD (data feed via Kraken).The pair must surpass the $215 and $216 resistance levels for a sustained upward move.Ethereum Price Holding Uptrend SupportEthereum price started a short term downside correction after it failed to clear the $216 resistance against the US Dollar. ETH price corrected lower and traded below the $212 support level.The price even spiked below the $210 level, but it stayed well above the 100 hourly simple moving average. During the decline, ether price traded below the 50% Fib retracement level of the upward move from the $206 low to $216 high.However, the bulls are currently defending the $208 support zone. The 61.8% Fib retracement level of the upward move from the $206 low to $216 high is also acting as a key support.It seems like yesterday’s major bullish trend line is active with support near $210 on the hourly chart of ETH/USD. On the upside, an initial resistance is forming near the $214 level and a connecting bearish trend line.Ethereum PriceIf there is a clear break above the trend line, the price could attempt to surpass the main $215 and $216 resistance levels. A successful close above the $216 level is likely to open the doors for a strong push towards the $225 and $230 levels in the near term.Bearish Wave?If Ethereum fails to clear the $215 and $216 resistance levels, there are chances of an extended decline. The next support below the trend line is near the $206 level and the 100 hourly simple moving average.A downside break below the $205-$206 support zone could open the doors for a large decline. In the mentioned case, the bulls may perhaps struggle to protect the $200 support zone.Technical IndicatorsHourly MACD The MACD for ETH/USD is about to move into the bullish zone.Hourly RSI The RSI for ETH/USD is currently near the 50 level, with a bearish angle.Major Support Level – $206Major Resistance Level – $216Take advantage of the trading opportunities with Plus500Risk disclaimer: 76.4% of retail CFD accounts lose money.

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