Ethereum has rallied during the month of December, initially falling a bit to start before turning around and forming a nice hammer candle on the monthly chart, recovering to a new multi-year high of about $660. This is a bullish candle and continuation of the longer-term uptrend that's developing on the ETH monthly chart, as ETH remains lagging behind BTC in all timeframes but is steadily 'following Bitcoin's footsteps' on the charts. As long as ETH maintains this uptrend and continues to find support in the ascending channel drawn below, ETH should be set for a major breakout itself in Q1 2021.

(December 19, 2020 7:30 PM EST)  

Outlook: ETH continues to print higher lows and higher highs, finding support well above the trendline and dips continue to be bought. Sentiment to bullish but only a fraction of the institutional mania that is driving BTC right now. However, as I pointed out last week, ETH is starting to see its own institutional interest of its own with the Grayscale Ethereum Fund seeing record inflows and a new QETH.U fund being launched on the Toronto Stock Exchanges. These two traditional market funds give traditional and institutional investors and companies liquid access to funds holding (and buying) actual ETH. Frankly, ETH is just where BTC was in late 2019/early 2020 with Grayscale only starting to garner attention - I think ETH should follow suit in short order. 

$1,400 seems to be a pretty arbitrary ATH for ETH and will probably not be terribly resistive. If anything, I think any resistance might be short-term traders taking profit or any remaining January 2018 retail investors foolishly exiting their positions at breakeven. Once ETH slices through $1,400, I think it runs up to the 161.8% fib extension pretty quickly, targeting the $2,000 level. After that, we can start looking for resistance levels in $500 - $1,000 increments up until $5,000 and then $10,000. If ETH maintains the sort of growth and institutional interest it's been seeing 2019 - 2020 and ETH 2.0 continues to be successfully rolled out over the next few years, ETH could appreciate well into the five-figures, resembling Bitcoin's 2017 run a bit, except this time supported by fundamentals and huge institutional inflows. 

Looking at the chart, you can see short-term targets for ETH at $800, $1,000 which align closely with Fibonacci retracement levels on the ETH Monthly Chart. After $1,000, then I think the FOMO starts to kick in a bit as investors rush to try to buy under or as close to $1,000 as possible, and then ETH will start moving up in larger increments - like Bitcoin transitioning from 2016 to 2017. I liken ETH right now very much to Bitcoin in late 2016-early 2017 - we've got a very bullish next couple of years yet to come.

I'm a buyer on short-term dips - from a long-term perspective, I think ETH under $1,000 is great value, so to be able to get ETH under $600 is still a great discount - even in the medium term!

Support: I'm looking for support around the $600 level which should be resistance turned support now. It seems like dips are being bought and ETH continues to print higher lows. 

Resistance: $800 is near-term resistance followed by $1,000 which I think comes shortly thereafter - $800 is relatively unimportant aside from being a stepping stone to reclaim previous price levels. ETH has a lot more firepower going into the rally this time around, like Bitcoin, so once it picks up a bit more momentum I think we'll see ETH blow past these short-term targets relatively unencumbered. 

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