Ethereum rallied on Monday, kicking off the week by completely recovering Friday's losses, ending the trading day around Friday's high at $378. This is a typical sign that dips are being bought and higher highs are to be expected, too.
(October 19, 2020 8:00 PM EST)
Outlook: Ethereum recovered nicely today, erasing Friday's losses and repositions itself for another attempt at $400 resistance which has been a significant inflection point over the last 4 years. In fact, I would go so far as saying if ETH overtakes $400 and marks it as support, Ethereum is officially in a bull market. It's that important of a price level. Yes, there is quite a ways between $400 and the 2018 ATH, but there is more than enough tailwind building up in support of a higher valuation for Ethereum. I'm a buyer on dips and continue to accumulate however and whenever possible. Remember, smaller positions are always better and allows you to average down your cost basis without weighing too heavy on a particular range and sleep better. Bitcoin had a more bullish day today, but that's to be expected, as crypto's #1 large-cap historically is always the first-mover. Though ETH is the second largest cap, it still tends to lag BTC a bit. Don't fret; ETH's time is coming, too. If anything, this is a sign that ETH is worth taking a hard look at if you're not already in position.
Support: Ether is currently trading above the 50 and 200 Day EMA's, which should act as support below around ~$355 and 280 respectively. The 50 Day EMA held, indicating support and a higher low, which leads us to believe next is a higher high.
Resistance: Ethereum looks ready to attack the $400 resistance level again, and after finding supporting over the weekend/Monday, the third time may be the charm. After that, look for resistance levels every $50 - 100, as they're round numbers, especially $500. After that, $600-700 is another key fib level, and the actual market value of ETH based on normalization of the ETH/BTC ratio, which is inevitable.
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