Ethereum pulled back on Thursday, initially pulling back before recovering a bit, eventually giving up about half of yesterday's gains. This is not even a particularly bearish candle as ETH had just printed six consecutive bullish candles, and the red hammer still indicates that even on a bearish day, buyers stepped in to buy the dip.
(November 12, 2020 9:30 PM EST)
Outlook: Ethereum pulled back a bit on Thursday, giving back a bit of yesterday's gains but turning a bearish day into a slightly bearish day. ETH remains above the $450 level which is bullish and the 50 Day EMA by a long shot. All in all, Ethereum is in a very bullish uptrend and by no means shows any signs of exhaustion or the bears overpowering the bulls. In fact, if ETH pulls back to $450 or even $400 and finds support, this should enable ETH to launch to the $500 level and higher. This chart is much less extended than Bitcoin; In my view, ETH looks like it's in a state of 'bullish compression'; forming higher lows, higher highs, and taking incremental steps higher without giving back much during corrective pullbacks. I think the path of least resistance is down to $450 or $400 at most, but that's it. Otherwise, I'm looking for ETH to move higher to $500 and, assuming it breaks above that, $600.
Variables to consider that might affect ETH are obviously Bitcoin, gold, equities, and the US Dollar. These are relevant as they are now pressing support and are in a seasonal liquidity drought amid volatility and economic turbulence. A traditional market selloff could negatively impact ETH as well.
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.
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.
