Ethereum rallied again on Thursday, continuing up above the $400 level and reaching towards the October highs around $420. ETH is following every timeframe's uptrend and looks to be following Bitcoin's breakout to new local highs as well.
(November 5, 2020 7:00 PM EST)
Outlook: Ethereum rallied a bit on Thursday, catching more bids and grinding its way up to the October highs around $420ish. This is a bullish sequence of events as ETH steadily grinded higher in September, pulled back in a consolidation pattern, has repeated that process, and continues to print higher lows and higher (local) highs. This points to higher prices and a breakout- probably soon- to a new local high, probably challenging or even exceeding the Aug-Sept highs around $500. Equities and gold are up, the US Dollar is down, ETH 2.0's deposit contract has seen millions of ETH secured for staking, and the ETH Dev team appears on-schedule and determined for a successful launch in Q4. 2021 should be an extraordinarily more bullish year as more phases launch, more investors and merchants adopt or add crypto to their portfolios or accepted payments platforms, and functional use-cases reach the public after years of development.
Support: Look for support at the 50 Day EMA around $375 and lower around $350 and $300, which coincides with the 200 Day EMA. If ETH breaks out higher here and runs up to $450 or $500, we'd then look for $400 to act as support as it is previous(?) resistance.
Resistance: If ETH can break above the ~$425 level, look for a move to $450 and then $500; $50 increments. $500-600 would be the top of the ascending channel's range, and $600-700 would be the fair market value for ETH based on the extended ETH/BTC ratio, which has been stretched to Bitcoin's side since 2018.
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