Ethereum roared to end the weekly candle, initially grinding steadily upward before exploding higher over the weekend, seeing a 30%+ gain overnight to end the weekly session on an extremely high note. This is the mother of all bullish engulfing candles with ETH closing at the candle's highs, reaching up to the $1,000 resistance level with a tremendous amount of momentum as we enter the first week of the new year.
(December 27, 2020 7:30 PM EST)
Outlook: Ethereum broke out over the weekend to juice the final weekly candle of 2020, both leaving 2020 and starting 2021 on an extremely bullish note. ETH broke out of its ascending channel and reaching up to the $1,000 level which is surely a notable resistance level and the final major resistance level before its arbitrary January 2018 ATH of $1,400. I suspect that figure will be crested in short order as there is no sensible reason for ETH to remain suppressed or below that level, especially given the fundamental improvements, technical bullishness, and institutional demand which appears to be massively increasing in Bitcoin's tow.
Going forward, I think ETH will see some resistance around $1,000 which may cause some short-term turbulence, but ultimately these prices are still underpricing ETH and anything under $1,000 is fantastic value in the medium-long term. Any pullbacks are great and increasingly rarer buying opportunities to add at these levels which, frankly, will probably never be seen again. Looking at higher targets, once $1,000 is broken, I think $1,200 is the next target followed by the ATH of $1,400. Once above that, I think ETH cruises straight up to $2,000 and then starts climbing its way to the five-figures. I liken ETH very much to Bitcoin in early 2017 - of course there are differences in market cap, fundamentals, and a whole host of others, but otherwise I think history will very much "rhyme" here. Remember, ETH is the No. 2 crypto both in market cap and price, so it makes sense that for anyone looking for crypto exposure other than Bitcoin, Ethereum should be the first natural alternative. In fact, for some, it's the primary or even sole crypto focus.
To add even more intrigue, if you saw my recent Ethereum Monthly Forecast (January), you saw my analysis of how ETH looks to be setting up for a massive bullish breakout on the longer-term charts that will crush ETH's January 2018 high. This, in confluence with the weekly chart's seemingly bullish breakout pattern seemingly now starting to play out, points to ETH making a rapid recovery up and above the $1,000 level or higher in the not so distant future, most likely in Q1 2021 as early as this week!
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 in the three-figures is a great discount - even in the medium term!
Support: I'm looking for support around the $600 level, then $500, then $400. $400 is further supported by the 50 Week EMA but I think $400 would be an unlikely retracement target to the downside and would only be reached under a worst-case scenario event. More likely, $600 may be touched again on a pullback or ultimately $500, but likely no lower.
Resistance: $700 is the immediate resistance, which ETH will look to battle for this coming week. After that, $750 and $800 all the way up to $1,000. After $1,000, ETH will probably start to trade similar to Bitcoin a few years ago where it starts moving in larger increments as investors inflows dwarf the market cap, causing rapid price discovery and causing euphoric jumps in price.
About Me:
If you enjoy these posts, please support the channel by "Tipping" this post below, or using either of these referral links below.
