Ethereum pulled back on Monday, falling below the $450 before buyers bought the dip, bringing ETH back above $450 to start the week off a bit in the red. This is slightly bearish but to be expected as ETH contends with added resistance just above a critical price level.
(November 17, 2020 8:30 PM EST)
Outlook: Ethereum pulled back a bit to start the week, printing a bullish wick but closing lower on the daily chart. ETH is struggling with two things: resistance from the upper ranges of a major inflection level ($400-$500), and Bitcoin’s dominance, particularly during rallies, which siphons capital from alts to BTC. Short-term this is frustrating, but medium-long term this is advantageous as this lagging effect allows for temporarily suppressed lower prices for accumulation. I’m a buyer on dips and at current levels, which I believe are still value. As mentioned in today’s Bitcoin forecast for tomorrow, I also expect ETH to selloff early and soon alongside BTC leading traditional markets, ETH possibly even more so. However, this is a major buying opportunity, and one I will be deploying some dry powder to add to my long-term portfolio.
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 an impulsive breakout above $450, a retest as support, then $500, then moves 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 a sick higher before an EWT retracement.
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