Ethereum Price Analysis: Shots fired as ETH/USD breaks above $200, Can the bulls hit highs at $220?

• Ethereum takes advantage of the bullish crypto market to return to levels traded last November.
• The formation of a rising wedge pattern says that a reversal could be imminent in the near term.

Cryptocurrencies are on fire on Thursday towards the end of the Asian session. Recovery has been forthcoming in the last 12 hours mainly to recover the lost ground in the first three days of the week’s trading.

Ethereum price has not been left behind as it has crossed above the critical $200 barrier for the first time since November 2019. However, the cryptocurrencies live rates show Ethereum bulls starting to feel the pressure from the bears.

Ether has corrected downwards 0.33% on the day to trade at $203.12, although the session kicked off at $203.84. The building bearish momentum is also supported by the high volatility and volume, which means that if support is not established above $200, ETH/USD could soon be testing other areas such as $190.

Moreover, the formation of a rising wedge pattern could further jeopardize the recovery chances that Ethereum has towards $200. The resistance at $210 must come down in order to pave the way for gains in that direction.

Ethereum crossing above the 200-SMA continues to be one of the drivers for the current bullish action. The narrowing gap between the 50-day SMA and the 200-day SMA also signals that the bulls are gaining traction. The best the bulls can do is to defend the price from dropping under $200 but traders need to be on the lookout for the RSI’s retreat from the overbought as it will signal the reversal. Other support areas to consider are $190, the trendline, $180 and $170.

ETH/USD daily chart