Ethereum Weekly Price Forecast (11/1/20) - Waiting for Slingshot Higher

Ethereum Weekly Price Forecast (11/1/20) - Waiting for Slingshot Higher

By Crypto Daily FX | Crypto Daily FX | 26 Oct 2020


Ethereum broke out during the week ending October 25, breaking out of its sideways trading channel and rising above the $400 level, closing just above that level to end the week near the high. Like Bitcoin, ETH is comfortably in an ascending channel pointing to higher prices, and is still undervalued due to extended ETH/BTC to boot. 

(October 26, 2020 8:30 PM EST)

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Outlook: Ethereum broke out a bit last week, reaching above the $400 level where it's been heavily contested since. Funny enough, ETH's move is actually smaller than Bitcoin's corresponding breakout from last week, leading to ETH being even more undervalued against BTC. If you've been following these forecasts for a while, you know I'm flabbergasted how ETH is still priced so low, at least relative to BTC. In my rough EWT wave count, I think Wave 3 takes us to at least the $700/800 range, which if you follow us, you'll know we've been saying Ethereum is undervalued according to the stretched ETH/BTC ratio for some time now, and a proper recalibration of this ratio should slingshot ETH to at least $600-700. However, with a successful ETH 2.0 Phase 0 launch sometime during Q4, I could see Ethereum reaching up to four figures by the end of 2020 before a pullback setting up the real bull run in 2021-2023.

Support: Ether is trading above the 50 and 200 Week EMAs, maintaining its uptrend. ETH is also trading near the center of its ascending channel, which should act as further support. After breaking out of its recent sideways trading channel, look for support around the $350 level. If ETH can break higher with an impulsive candle, then I'll look at $400 as support. However, right now ETH has been chopping around that level a little too closely without breaking much higher above it, so we'll have to do the same thing we did before with Bitcoin and the 50 Day EMA and wait for a conclusive break higher before we're comfortable calling $400 support.

Resistance: I'm calling resistance at $400 until we officially break higher and call it support. This level is important as it is both a round psychological number but also a lower historical resistance point. After that, look for resistance around the June 2018 highs around $500, and then $550/600. Look for resistance every $50-100, notably 2018 waves down, which should act as resistance as ETH attempts to reclimb these levels. Also, remember that Bitcoin has already climbed back 60% of the way to its previous all-time high, yet ETH is still down almost 70% from its January 2018 all-time high of $1,400. $1,000 will assuredly be massive resistance, which frankly is not off the table with an impending ETH 2.0 initial launch later this year. 

 

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