Ethereum fell on Tuesday, giving back most of yesterday's gains. This is most likely a result of Bitcoin's continued bullish rise in which BTC reached up to the $12,000 level again today. In Crypto markets, smaller-cap coins (altcoins) tend to suffer in price as the flagship large-cap crypto token Bitcoin rises in price.
(October 20, 2020 8:00 PM EST)
Outlook: Ethereum took a hit today along with other altcoins, but the important distinction is that the primary driver was less selling of ETH but rather the appreciation of BTC against ETH (and other altcoins). However, there is likely some algo selling that occurred in response to BTC's rise, so it's not totally unfounded. This is not bearish for ETH fundamentally or in the medium-longer term charts. However, the fact that Bitcoin tends to lead altcoins means the nearest-term gains should probably be found in BTC, with altcoins playing catchup thereafter. That's not to say ETH isn't at an attractive price level or will throw any scent of bullishness to the wind. This is a kneejerk sort of reaction for the crypto markets, but rest assured that this sort of price effect on altcoins is more prevalent in uptrends, not downtrends.
Support: Ether is currently hovering above the 50 and 200 Day EMA's, which should act as support below around ~$355 and 280 respectively. It should be interesting to watch ETH responds as it closes the gap on the 50 Day EMA, which is only $10 lower. If it bounces, then that's a good sign. If not, then the 50 Day EMA may still be a contested area and should be treated as resistance.
Resistance: Ethereum looks ready to attack the $400 resistance level again, and after finding support 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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