Ethereum broke higher Wednesday, reaching above the $400 level and forming a bullish candle to close slightly above the all-important $400 inflection point. This is, of course, a bullish development and a higher low as ETH looks to follow Bitcoin higher.
(November 5, 2020 7:00 PM EST)
Outlook: Ethereum rallied on Wednesday on an official announcement (tweet from ETH Founder Vitalik Buterin) that the ETH 2.0 deposit contract was officially launched (technically yesterday). This is bullish for two reasons: 1) The initial stages of ETH 2.0's launch have officially begun, and 2) ETH 2.0 is ahead of schedule. Originally the deposit contract was supposed to launch 1-2 weeks ago, but after a bug was identified at the 11th hour, the ETH Dev team decided to delay "for a couple months." The fact it was resolved and promptly executed in a matter of days shows just how competent and prepared ETH 2.0 will be.
If ETH can break above the ~$425 level, look for a move to $450 and then $500; $50 increments. If today's bullish candle holds, this would be a higher low following the recent consolidation pattern in the greater short-medium term uptrend.
Support: ETH found support at the 50 Day EMA around $370 and bounced off that level yesterday, even bouncing off around that region earlier today before rallying higher. As mentioned previously, I need to see an impulsive wave higher above $400 again to be able to call it support. That is now in the foreground again as ETH closed a hair above $400. Longer-term support should be found around $300 which is only a few bucks higher than the 200 Day EMA, which is nearby.
Resistance: $400 is my near-term resistance until ETH breaks decisively above it. Once ETH breaks through $400, we'll then look for confirmation of support and then look higher to $450 and $500.
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