Ethereum had a quiet day on Tuesday, splashing up a bit before turning around, closing the daily candle slightly red just above the $600 level. Ethereum is a hair overbought and recently broke above the top of the ascending channel last Friday, so a pullback is not out of the cards here.
(November 24, 2020 8:30PM EST)
Outlook: Ethereum compressed a bit on Tuesday, having a quiet day to end slightly down but still above $600. I think ETH is more susceptible to short-term pullbacks than Bitcoin solely because the majority of liquidity in crypto remains in King Bitcoin, however I think any pullbacks in ETH are short-term and most likely just digesting recent gains and a retest of former resistance at $500 as new support. ETH has taken a much more two-steps-forward, one-step-back approach, which is very healthy and sustainable as opposed to Bitcoin's straight-up rally. If ETH consolidates around the $600 level and breaks up, I'd look for a move to $700 next. If ETH falls below the $600 level, I'll look for value underneath as it pulls back closer to the $500 level, which should now offer strong support. I'm a buyer on dips, and not short-selling or selling whatsoever.
In fundamental news, the ETH 2.0 deposit contract not only met but exceeded its 524,000 ETH staked threshold required to launch the ETH 2.0 beacon chain, as investors piled in more ETH with more than a week left before the early Dec. deadline.
Support: Look for support at $500, which is former resistance and a large, round psychological number. Being above $400 is bullish, and $500 even more-so.
Resistance: Eyes are on what happens around $600, as a break above points to $700. Once ETH gets moving, especially with a potential bullish catalyst with the ETH 2.0 beacon chain secured to launch on time, ETH can get some bullish footing and climb to the $1,000 figure just as quickly as Bitcoin did recently, and that was to the ATH.
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