Ethereum went back and forth Friday, initially rallying then falling to close the daily candle almost completely flat heading into the holiday weekend. Ethereum is facing bearish pressure right now as this week has seen increasing selling by the day, as ETH is now facing being pushed back under the $500 level early next week.
(November 30, 2020 7:30PM EST)
Outlook: Ethereum had a neutral to bearish end to the week Friday, oscillating up and down before settling nearly flat on the day, heading into the weekend with a bearish undertone. ETH has tested the $500 level twice over the past 2 days, implying ETH could be pressured lower and into the $400s as early as Monday, possibly even during the thinly-traded weekend session, during a US holiday weekend no less. I think this short-term correction continues into next week as the path of least resistance is still down, at least for now -- it was much more so around $600.
I think a pullback to the 50% or even 61.8% (upside down in chart above - apologies) levels makes a lot of sense and corresponds with support between the $400 and $450 levels, also aligning with the 50 Day EMA around $438. This will be an important range and one I am targeting for my own accumulation, as I will be looking for value as ETH pulls back, buying on dips for a medium- to longer-term position. I'm not a seller of ETH whatsoever, only DCA'ing to add to my stack. As explained before, I expect ETH to outperform Bitcoin by a significant margin during the upcoming 2021-2023 bull market, providing outsized gains for a variety reasons.
On a lighter note, ETH 2.0's deposit contract was more than filled and its beacon chain is set to launch next week on December 1st which may provide a boon of buying amid this short-term correction.
Support: Look for support at $500, which is former resistance and a large, round psychological number. With that level likely under fire over the next 72 hours, I'll be watching $450, the 50 Day EMA at $433 and rising, and $400, which should provide strong support. An impulsive breach below $400 spells major trouble, as ETH is then scrambling for a higher low which jeopardizes the uptrend.
Resistance: $600 is solidified as short-term support, as ETH only churned there for a few days before getting rejected hard. It might not be until the new year when ETH makes another attempt at breaching $600, but when it does, look for increases in increments of $100 until $1,000, then it's a different ballgame.
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