Ethereum rallied a bit on Tuesday, moving back above the $400 level and settling around $404. This is not an impulsive move and shows there's quite a bit of back and forth going on at this critical level.
(October 27, 2020 8:00 PM EST)
Outlook: Ethereum recovered a bit today, getting back above $400 following yesterday's pullback on news that ETH 2.0's deposit contract will be delayed until at least November. This is not terribly bearish news, as the delay just means a more polished launch in a month or so. The fact that the initial stages of ETH 2.0's launch are still scheduled to launch by the end of 2020 is extremely bullish from a medium-term perspective and indicative of a strong product that's made enormous strides in only a few years. ETH remains in a valid uptrend by all accounts, and may be dragged up by BTC which is continuing its bullish run above its 2019 highs. ETH is typically the second mover in crypto and, in bullish markets, is usually a ticking timer until it follows the king in tow. I'm a buyer on dips, especially if we get a pullback to the $350 level. I even like ETH at $400 given how stretched the ETH/BTC ratio is.
Support: Look for support at the 50 Day EMA around $365 and then $350. As mentioned previously, I need to see an impulsive wave higher above $400 again to be able to call it support. That didn't happen, so ETH pulled back, and now I'm looking for a bounce off support to reattempt $400. Longer-term support should be found around $300 which is only a few bucks higher than the 200 Day EMA, which is nearby.
Resistance: $400 is my near-term resistance until ETH breaks decisively above it. Once ETH roasts $400, we'll then look for confirmation of support and then look higher to $450 and $500. Frankly, once ETH is above $500, I think there's no turning back. Once ETH 2.0 Phase 0 starts to roll out, I think we'll see explosive moves higher, it's just a matter of weeks at this point.
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