Ethereum rocketed higher on Friday, blasting up to the $450 level and closing near the highs. This is not only bullish but closing at the highs of the day heading into a weekend usually indicates positive momentum will carry over the weekend into Monday.
(November 6, 2020 7:30 PM EST)
Outlook: Ethereum broke out higher Friday, blowing past minor resistance around $425 and continuing unabatedly to next resistance around $450. This is more of a psychological resistance level, as is $500.
Re: the ETH/BTC ratio, the next resistance level would be the 50 Day EMA around 0.031 ETH/BTC, which at current prices would value ETH at ~480. Next resistance level after that would be 0.04, which is both the September highs and the 2019 highs. At current levels, 0.04 ETH/BTC would equate to $624, which I feel is a much more accurate valuation for ETH. However, it's important to remember that Bitcoin, being the largest-cap crypto, moves first, and alts follow-even ETH.
Looking forward, I see ETH still undervalued, especially against BTC, and is a better value play if you're buying today. However, BTC should be expected to move first, so it's worth noting that if one's an agile and active investor, one could hold BTC and then flip to ETH after BTC's dominance starts to retreat.
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 continuation above $450, then $500, then 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 further ETH 2.0 launches propel ETH higher.
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