Ethereum rallied a bit on Friday, erasing yesterday's losses and closing the daily candle near the highs north of $475. This is a bullish candle and shows Ethereum's move up is probably alive and well.
(November 13, 2020 8:30 PM EST)
Outlook: Ethereum rallied a bit on Friday to end out the week, erasing yesterday's loss and making another move higher to retest Wednesday's high around $480. Ethereum is playing catch up to Bitcoin and appears to be only just beginning to pick up momentum to the upside as Bitcoin's uptrend appears to be ending. I think ETH is positioned well with plenty left in the tank to breach $500 and higher from here. If it doesn't, I'll look for a pullback to the $400 region, which I think should offer plenty of support. I'm a buyer on dips, and am not a seller anytime soon.
As ETH 2.0 staking pools start to form and more and more ETH gets locked up in the ETH 2.0 deposit contract, the bullishness continues to grow for ETH 2.0's gradual rollout, which will really pick up steam in 2021 as more prominent, functioning, interactive features are deployed to the masses. ETH is likely concluding a long, multi-year accumulation phase which will ultimately end once ETH breaks out from this long-term region, likely later this year or Q1 2021. Following a late Nov/early Dec selloff in traditional markets that may bleed into crypto, I think ETH is perhaps the most bullish crypto investment to make at lower levels, as it will easily outperform Bitcoin over the next few years during an emerging crypto bull market.
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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