Ethereum rallied a bit on Wednesday, grinding above yesterday's weak looking candle and recovering to the $750 level to form a green candle on the daily chart. This is bullish as ETH bounced off $700 yesterday to remain above the level and today's price action provided further continuation upwards. As long as ETH can maintain these levels, then we should see ETH continue up towards $800 in short order.
(December 28, 2020 8:30 PM EST)
Ethereum appears to have successfully (at least initially) tested the $700 level yesterday with further validation today. If ETH can break higher or even just grind in between $700 - $750, then that would lead us to believe that ETH has made a higher low and will find $700 as support. If not and ETH breaks below $700, then I think a pullback to the $650 level or possibly $600 would be an excellent dip to buy and still a higher low yet.
I'm extremely bullish on ETH as many retail investors are already finding themselves priced out of Bitcoin. That leads them to the next best crypto: Ethereum, which is much more reasonably priced for someone with a stimulus check or Christmas money to spend. I think there's no doubt that there will be another altseason later in the bull market as it usually transpires, though ETH has solidified itself at this point as the de facto No. 2 crypto by market cap, price, utility, and safety of investment.
I think the best strategy here is to buy the dips and even earn ETH wherever possible. Otherwise, DCA is the way to go and possibly store some dry powder for another 'larger' dip if we're lucky enough to get one in Q1 2021. I think 2021 will be substantially better for 2021, although ETH has outperformed BTC in 2020 so really it's no surprise there.
Support: If ETH does pullback, look for a retracement back to the $650 and then $600 levels. ETH has continued to print a series of higher highs and higher lows, so at this point I'm not sure ETH even gets back to $500 at this point. The 50 Day EMA is probably the deepest retracement ETH sees around $550. More likely, I think $600 would be a logical higher low and a ~20% pullback from today's close, which I think is more than sufficient as ETH looks up.
Resistance: ETH closed above $700 and appears to have found a bit of support yesterday, so for now I'll say ETH has tentatively overtaken $700. The nail in the coffin would be an impulsive candle up higher towards $800. Assuming ETH holds $700, the next target is $750 which has been a point of resistance, then $800, and $1,000. Then we can start talking about new ATH's, as I doubt there's much resistance between $1,000 and $1,400.
About Me:
If you enjoy these posts, please support the channel by "Tipping" this post below, or using either of these referral links below.
