Ethereum, an alternative cryptocurrency to bitcoin, hit a fresh record high on Sunday, amid continued interest in the digital asset space and increased trade from Asia.On Sunday, ethereum traded at an all-time high of $250.41, according to data from industry website CoinDesk.This is up 2,839 percent from the $8.52 handle it had on January 1.Ethereum was trading at around $246.62 on Monday morning, slightly off its record high.Ether is the name of the cryptocurrency which runs on the ethereum blockchain, which is the technology that underpins the digital coin.But ethereum is often used as shorthand for the digital currency as well.What's behind the rally?Ethereum has been designed to support so-called smart contract applications.A smart contract is a computer program that can automatically execute the terms of a contract when certain conditions are met.It's this practical use of ethereum which has excited many large corporates and investors, and led to the rally.But there are a number of other reasons supporting the price.

These include: A group called the Enterprise Ethereum Alliance (EEA) was recently founded to connect large companies to technology vendors in order to work on projects using the blockchain.Companies involved in the launch include JPMorgan, Microsoft and Intel.A further 86 companies were recently added to the alliance, helping to give legitimacy to the technology.There's been a surge in initial coin offerings (ICO) which is a new way for cryptocurrency start-ups to raise money.These ICOs have been worth tens of millions of dollars and many of the companies are based on the ethereum blockchain, which means that it would utilize ether tokens, helping to boost the price.Vitalik Buterin, the founder of Ethereum, recently met with Russian President Vladimir Putin.Industry publication The Cointelegraph reports that Putin and Buterin discussed the application of the technology in the country.Cryptocurrency experts said further regulation and government intervention could help the price of bitcoin and ethereum.

South Korea driving trade Much of the trading volume in ethereum at the moment — around 38 percent — is coming from South Korea, according to industry website CryptoCompare with rising interest from other regions."All major Asian exchanges, including ours, are currently overwhelmed by the sudden growth in our client base and trading activity," Aurelien Menant, founder and CEO of Gatecoin, a regulated bitcoin and ethereum exchange based in Hong Kong, told CNBC by email."Specifically, requests for more ether trading pairs seems to be a common theme," Menant added, highlighting the growing interest for traders based in a number of countries.Key Highlights There were further gains in ETH price, as it moved to a new high at $228.50 against the US Dollar.There is a crucial ascending channel forming with support at $205 on the hourly chart (ETH/USD, data feed via SimpleFX).If there is a minor dip towards $205-208, the price may find support for another upside move.Ethereum price gained solid pace against the US Dollar and Bitcoin, and it looks like ETH/USD is gunning for the $250 level.

Ethereum Price Uptrend Intact Yesterday, I highlighted a major horizontal resistance at $191 in ETH price against the US Dollar.A break above was required for further gains above $200.The price did break $191, and also managed to overcome all offers near $200.It ignited a sharp upside move and took the price to a new high at $228.50.Earlier, there was a minor dip towards the $185-188 levels where the price found support and bounced sharply.come aquistare bitcoinAfter setting a high at $228.50, the price started a correction.dogecoin eurHowever, there are many supports like $208 waiting on the downside to hold losses.bitcoin usb miner vs gpuThere is a crucial ascending channel forming with support at $205 on the hourly chart of ETH/USD.bitcoin farm ios

It can be seen as a major uptrend support at $205-208.As long as the price is above $200, there can be at least a retest of $228.50.The $208 support is also near the 23.6% Fib retracement level of the last wave from the $136.40 low to $228.50 high.So, if there is a correction towards $205-208, the price may find support for another upside move.On the upside, a break above $228-230 could easily open the gates for a move towards $250.bitcoin atm lawHourly MACD – The MACD is moving nicely in the bullish zone.bitcoin litecoin peercoin dogecoinHourly RSI – The RSI is currently at 62 and correcting extreme overbought levels.Major Support Level – $205 Major Resistance Level – $228 Charts courtesy – SimpleFX Disclaimer:Ethereum, a rival cryptocurrency to bitcoin that has rallied over 2,700 percent this year, could be due for a correction to the tune of 38 percent, according to one analyst.

The cryptocurrency was trading at around $191.78 in the early hours of Friday morning and has been moving within a tight range.This brings ethereum close to a price level which one technical analyst, who looks at historical trading patterns to determine future price moves, said could see a sharp drop in the digital currency.Nicola Duke, an analyst at analysis platform Forex Analytix, said that if ethereum trades below $170, then it could mean the price falls to $140.This would mark a 38.4 percent decline in the price from Wednesday's high of $227 and around a 27 percent fall from Friday's early morning trading price.Ethereum has fallen from Wednesday's high which could mean traders may start taking profits."The fact we have had that wobble yesterday might mean we see some profit taking into the weekend," Duke told CNBC in a phone interview on Friday.But after falling to $140, which Duke said is a "huge level to buy against", ethereum could rally $100 to $240.This could happen on Tuesday.

Duke has so far been correct on her calls on bitcoin.On Thursday, the analyst told CNBC that if bitcoin got close to $2,800 there might be some pullback.The cryptocurrency reached $2791 on Thursday and then declined.It was around $2,571 on Friday morning.Duke said that the bitcoin decline could continue to January before bottoming and then a rally.Investors have been getting interested in alternative cryptocurrencies to bitcoin given that it has seen a huge rally this year.Ethereum is seen as a good alternative and has been backed by major financial institutions and corporations.A group called the Enterprise Ethereum Alliance (EEA) was recently founded to connect large companies to technology vendors in order to work on projects using the blockchain.Companies involved in the launch include JPMorgan, Microsoft, and Intel.On Tuesday, the EEA announced another 86 firms joined the alliance, which is adding growing legitimacy to the cryptocurrency.A full explanation about ethereum and its appeal can be found here.