Amazon News Sparks ETH Recovery? (3/4/21 Forecast)

Amazon News Sparks ETH Recovery? (3/4/21 Forecast)

By Crypto Daily FX | Crypto Daily FX | 4 Mar 2021


Ethereum rallied on Wednesday, rising up to the 38.2% fib retracement at $1,656 on the Amazon Workspace news before giving back a bit of the gains and closing the daily candle around $1,600. This is a very bullish candle as ETH puts in a higher high and higher low, reaching higher and starting to form the right side of a bottoming pattern's 'U' shape.

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(March 3, 2020 7:30 PM EST)  

Short-Term:

Ethereum's rally today exhibited bullish strength of the buyers as ETH cruised higher, breaking $1,600. (Buyers of this dip between $1,300 and $1,600 - like us - are now in profit - see how easy that was?). The 50 Day EMA is clearly very supportive and all it took was a bit of bullish news/adoption for the price to jump $100 overnight. I'm looking for ETH to continue higher to retest the highs around $2,000, forming a rounded bottom and "U"-shaped recovery. It seems like the suspected reason for the correction was indeed liquidation of overleveraged longs which have now been washed out. As you may have noticed there was a flurry of unsubstantiated bearish and FUD news pieces by clueless media organizations, showing who was analyzing data and who was fear-mongering based on headlines. We invest based on the former.  

Long-Term:

This dip has been fantastic value at 20-30% off the current >$2,000 ATH. With another standard bull market correction out of the way, ETH appears to be rebuilding momentum and bullish sentiment to grind higher yet again, this time likely to get at least $3,000, but very well could go higher. With the explosion in DeFi, dApps, and NFTs, most of which are built on the Ethereum network, ETH is well-positioned to outperform its 2020 performance, which was ~450%. Accordingly, this equals a $3,000+ ETH by EOY 2021, and very likely even higher. 

ETH/BTC:

ETH rallied a bit during the Wednesday session, initially rallying to about 0.032 before giving back a bit of the gains as ETH/BTC appears to be finding some support around the 0.03 level / 200 Day EMA. If ETH can put in a bottom at this level, which it appears to be trying to do, then that would be a higher low and we can start ramping up accumulation. 

Historically, the ETH/BTC ratio tends to range between 0.04 and 0.08 and typically peaks around 0.1 ETH/BTC at the tail-end of crypto bull markets, so 0.03 is near the bottom and excellent value in the medium-longer term of this cycle. 

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From my perspective, all signs indicate it's probably wise to buy ETH or earn ETH now before prices continue to ascend in dramatic throughout the rest of 2021 and further. Buying ETH under $2,000 is like buying Bitcoin under $30K; not much higher than the previous ATH, and not likely to last much longer. 

Support:

61.8% fib at $1,422, 0.03 ETH/BTC.

Resistance:

$2,000, then $2,500, then $3,000. 

 

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