Ethereum rallied on Wednesday, rallying to about the $2,450 level before pulling back a bit, closing the bullish daily candle just above $2,400. This is a bullish candle as we get another higher high and higher low to come within 5% of the current ATH.
(April 21, 2020 8:30 PM EST)
ETH has taken the reins in the crypto markets as we approach the current ATH around $2,550, a stone's throw away. We have the makings of a higher low in the form of last weekend's flash crash with a technical bottom nearly precisely at $2,000. This sets ETH up for another bullish breakout as the crypto space works its way out of this consolidation period and enters a bullish time of year.
Looking at the ETH/BTC chart, ETH has decisively broken out above the 0.04 level with a la today's massive impulsive bullish candle, taking ETH up to 0.044 before closing the daily candle near the highs. This further validates our long-term higher low thesis in late March which points to a new higher high in the near future, potentially 0.05 and higher. (Doing some quick math, 0.05 ETH at $60K BTC = $3,000 ETH).
Now that ETH/USD is in price discovery mode, it's best to follow the ETH/BTC ratio for support and resistance levels. We don't have a major resistance level until 0.045/0.046, the February high. 0.04 should now act as support unless BTC makes a parabolic run and huge amounts of capital rotate out of alts and ETH and into BTC. BTC will rally again, likely causing ETH to retreat a bit, however I think a retracement of this run - which still has room to run - could take ETH to the 0.04 level.
Support: $2,000 and tentatively 0.04 ETH/BTC.
Resistance: $2,500, then $3,000. Keep an eye on 0.045 and 0.05 ETH/BTC.