Ethereum rallied on Monday, rallying from about the $1,650 level to over $1,825 during the trading session before closing the daily candle just above the $1,800 level. This is a very bullish candle as excellent followthrough as ETH looks to snap the short-term downtrend which it can do as early as this week with a break above $1,800 as ETH moves back up toward the ATH around $2,000.
(March 29, 2020 8:30 PM EST)
Short-Term:
Ethereum once again found support at the 50 Day EMA over the weekend, forming a hammer on Saturday around $1,550 to nearly perfectly bounce off the 50 Day EMA. Since putting in that short-term bottom, ETH has rallied nearly 20% or ~$250 to over $1,800, regaining its strength last seen in the first week of March. If ETH can break above $1,800, we should see a rally to retest resistance around $2,000. A decisive break above there with a daily close should send ETH to new highs, first $2,500 then $3,000, our immediate-term price targets.
ETH/BTC:
ETH/BTC has rallied a bit, apparently bottoming late last week and now grinding back higher now with three consecutive small albeit bullish candles. While ETH/BTC has been absolutely crushed and fallen through nearly every support level down to the 0.03 level, it's at least worth noting is that ETH has 1) bounced off 0.03, marking it as clear longer-term support and a higher low, and 2) broken above the 200 Day EMA. This is the first step before ETH/BTC can retest and eventually break above the 50 Day EMA around 0.032, which is the immediate-term target. A break above there would send ETH/BTC higher to 0.035, 0.038, and then 0.04.
ETH can double or triple in USD price but maintain the same BTC ratio if BTC goes parabolic, as we have been expecting for Spring-Summer 2021. Like previous cycles, typically Bitcoin leads all of crypto and alts 'catch up' later, of which ETH would lead the altcoin pack. Typically, ETH doesn't peak in BTC or USD values until 2-4 weeks after Bitcoin puts in a market cycle top, giving us assurance that ETH is still relatively early in this bull market phase and that sub-$1,800 is excellent medium-long term value. 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+).
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 which was tested and held, then 50 Day EMA around $1,550, then $1,500, then floor at $1,400.
Resistance:
$2,000, then $2,500, then $3,000. Pay more attention to the ETH/BTC ratio for resistance levels.
