Ethereum rallied again on Tuesday, initially falling below $1,000 early during the trading session before recovering wonderfully, reaching as up to the $1,150 level before closing the daily candle just below $1,100. This is a bullish continuation as Ethereum is finding support shortly underneath and rallied again nearly to a new local high. ETH appears to be getting going here following a major breakout on the USD and ETH/BTC charts.
(January 5, 2020 8:30 PM EST)
ETH continued its rally from yesterday's colossal breakout in which ETH surged over 30% in 24 hours. Today was a more important mission: hold $1,000, which ETH did successfully, even rallying to near yesterday's highs. Bullishness is sweeping over all of crypto right now as many altcoins are starting to pump indicating a mini alt season as we occasionally see during bull markets as old investors rotate a bit of BTC profits into alts and new investors are too priced out of Bitcoin so they look to cheaper alternatives, the first of which being Ethereum. If you've read my articles before, you know I'm extremely bullish on ETH and believe it will outperform BTC during this bull market in terms of percentage gained. In simpler words: ETH will generate higher profits. Going forward, I don't think the medium-long term target over the next few years is anything short of five-figures, maybe even somewhat replicating Bitcoin's 2017 run to which I often like to liken ETH in 2020-2021.
On a shorter timeframe, ETH is bullish and digesting this weekend's gains while also trying to sustain some continuation higher. ETH is now only a few hundred dollars short of its January 2018 ATH of $1,400, which is a pretty arbitrary ATH and price level. Accordingly, I think it's only a matter of time (not much) before ETH slices through that level and springs up to $2,000 and above.
Yes, ETH gas fees are astronomical right now; ETH2 is not out yet, though we're a helluva lot closer to a successful mainnet launch than we were in 2017 when it was merely conceptual. Whereas now, ETH2's Phase 0 Beacon Chain launched over a month ago and over 1 million ETH were staked as part in anticipation of ETH2's Proof of Stake consensus mechanism transition and interest-generating feature.
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: Support can be easily surmised at ~$750 which is now 30% lower and seemingly far in the rear-view mirror. Above that, look for support between $800 and $1,000. More importantly, however, I think now is the time to watch the ETH/BTC ratio for support instead of the USD pairing. The USD pairing is not the sole factor in terms of support and resistance; in fact, 0.03 could be a critical support level which may equate to an arbitrary US Dollar price level.
Resistance: If ETH can hold onto $1,000 and grind higher, ETH should continue higher and then we can start talking about new ATH's, as I doubt there's much resistance between $1,000 and $1,400. $1,200 is my immediate-term points of interest which has been slightly resistant in the last 48 hours that ETH has recently broken out and tested it.
About Me:
If you enjoy these posts, please support the channel by "Tipping" this post below, or using either of these referral links below.
