Ethereum rallied again on Thursday, breaking above the $400 level in convincing fashion, closing the day near the highs just under $420. This is possibly a more bullish day for ETH, as this is arguably a line in the sand for ETH's longer-term direction.
(October 22, 2020 8:00 PM EST)
Outlook: Ethereum rallied again on Thursday, breaking above the critical $400 level and closing well above, solidifying the day and continuing this week's breakout. ETH is now in a short-term uptrend as well, with $400 punctuating this price action. I have been a bull on ETH for some time and even at lower prices. It is still significantly undervalued vs BTC, but that's okay, because this gives us more time to accumulate. I'm a buyer on dips, and frankly rallies too at these levels, as they simply will not last. I anticipate at some point over the next couple months we'll see ETH slingshot up to $600-700 overnight, possibly with the launch of Phase 0 of ETH 2.0. This is a market I can't get enough of, and continue to DCA for what looks to be a very bullish next few years for crypto.
Support: Look for support around the $350-365 level which is the 50 Day EMA and a psychological level. Now that ETH is above $400, it'll be interesting to see if this continues, or if ETH will pause and pullback a bit to digest its gains. If that happens, watch to see if $400 serves as support or ETH pulls back a bit lower first before reattacking $400 again. Below that, longer-term support should be found around $300 which is only a few bucks higher than the 200 Day EMA, which is rapidly closing the gap.
Resistance: If Ethereum hold onto $400 as support, we can look at $450 - $500 next which is the top of the ascending channel as drawn in the chart above and a round psychological number. Frankly, $400 is my inflection point where I perceive ETH in a bull market. An impulsive and tested move above $500 just punctuates that perspective until proven otherwise.
About Us:
If you enjoy these posts, please support the channel by "Tipping" this post below, or using either of the referral links below.
They cost you nothing and give me a small reward, which makes me a little happier to share these personal analyses with you at no cost.
