Ethereum rallied a bit on Monday, swinging wildly down, up, and settling almost unchanged to end the day slightly positive. This is a slightly bullish doji candle, indicating increased volatility but resilient buying, at least for now.
(November 9, 2020 8:00 PM EST)
Outlook: Ethereum rallied a bit on Monday, reaching up above the $450 level before finding resistance, pulling back, and settling near the Friday close. ETH is facing increased volatility and short-term turbulence after a bullish breakout last week, which might result in some short-term profit-taking. This should not be significant, as ETH has only captured a fraction of Bitcoin's recent gains over the past 6 weeks, and ETH has yet to even eclipse the September highs. I think this leaves room for ETH to continue higher a bit against Bitcoin, which appears overbought and ready for a short-term retracement to digest its recent gains. This should allow alts, Ethereum being the primary alt, to catch up to BTC, giving ETH its chance to breach the $450 level and possibly $500 to reach a new yearly high.
Support: Look for support at $400, which is a major inflection level for ETH and former resistance, so it should now act as new support. Below that, the 50 Day EMA at $378, then $350, then the 200 Day EMA which is trading around the round psychological point of $300.
Resistance: Look for continuation above $450, then $500, then in $50-$100 increments. I think the upper range of this move is somewhere between $500-600, but it wouldn't be surprising to see further ETH 2.0 launches propel ETH higher.
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