Sirwin
Sirwin

Last Chance to Buy ETH Sub-$2,000? (3/16/21 Forecast)

By Biz Wisdom | Crypto Daily FX | 16 Mar 2021


Ethereum rallied a bit on Monday, starting off high from the weekend session but promptly giving back the gains, ultimately closing the daily candle slightly positive. This is an inverted hammer but a potentially bullish one as ETH nearly scraped resistance at $2,000 and ended the day up about $30. The higher high implies the ETH buying pressure remains.

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(March 15, 2020 10:30 PM EST)

Short-Term:

ETH has formed a nice V-shaped recovery and is only $200 off the January highs of ~$2,050. If ETH continues to grind higher, it'll face resistance at $2,000 where it'll either break higher or get rejected and consolidate lower, possibly testing support around $1,600 which looks to be new higher support. If ETH breaks above $2,000, then we could see a quick move to $2,500 or even $3,000. ETH's chart eerily resembles Bitcoin's in early 2017 when the asset finally broke back above $1,000 after a multi-year drawdown and initiated a period of rapid price discovery higher into previously unseen price territory. 

If ETH gets rejected at $2,000 or sells off, we could see ETH pull back to the 50 Day EMA around $1,500 which is typically the floor of a bull market, which would be another higher low. 

 

ETH/BTC:

ETH rallied a bit against BTC on Monday, bouncing off the 200 Day EMA and rising to about the 0.0317 level, closing near the highs. It's a small candle so not particularly bullish but it is encouraging at least that ETH continues to find support at this level. If ETH/BTC can break above the 50 Day EMA, then we may have confirmation that ETH/BTC has resumed the uptrend and started the next wave higher, targeting 0.035, 0.04, and the local top around 0.046. The 200 Day EMA and 0.03 levels should offer a confluence of support for ETH, though if it breaks lower, then we could see ETH pullback in price or ETH could trade sideways while Bitcoin surges. 

If ETH/BTC peaks around 0.1 or higher as it historically has done in previous crypto bull cycles, ETH is set up for a conservative 300%+ price appreciation from current levels ($5,400+).

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From my perspective, all signs indicate it's probably wise to buy ETH or earn ETH now before prices continue to ascend in dramatic throughout the rest of 2021 and further. Buying ETH under $2,000 is like buying Bitcoin under $30K; not much higher than the previous ATH, and not likely to last much longer. 

Support:

$1,600, then $1,500, then $1,400.

Resistance:

$2,000, then $2,500, then $3,000. Pay more attention to the ETH/BTC ratio for resistance levels. 

 

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Biz Wisdom
Biz Wisdom

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