Ethereum exploded to the upside on Monday, breaking above the $550 level and then the $600 level, settling the daily candle just above around $608. This is extremely bullish and precisely the type of candle we've been anticipating for a few weeks now; for ETH, it's only just beginning.
(November 23, 2020 8:30PM EST)
Outlook: Ethereum enjoyed a bombastic start to the week, catapulting over 10% to above the $600 level, even breaking the above top of the ascending channel. As you can see in our Top Performing Cryptos Since 2016 analysis, ETH is consistently one of -- if not the top performing large-cap crypto asset in the space, routinely outperforming Bitcoin by a wide margin. While this is true over the longer-term, that's not to say ETH cannot have an oversized rally now to catch up to Bitcoin, which is starting to see diminishing returns over time as its market cap grows and approaches that of institutional-grade assets, making them more expensive, less volatile, and difficult to manipulate, at least vs alts like ETH.
I think ETH is well-postured to continue running up from here given it's not cut at the knees by a sharp Bitcoin plummet. I'm looking for a continuation up to $650 and then $700, in $50 increments up to $1,000 ultimately which should act as firm resistance. If ETH gets rejected by $600, look for a pullback to the $550 or ideally $500 level, which should be supportive and the value-hunters should gladly step in, myself included.
We are approaching the end of the month, and the first week of December is when ETH 2.0’s beacon chain is scheduled to launch IF the deposit contract’s 500k+ staked ETH threshold is satisfied. Over the past few days, a large plurality of the required ETH has been staked, confirming the much-held belief that more stakers will come in as the deadline approaches. If the threshold can be met by the deadline, ETH 2.0's beacon chain will launch and initiate the next phase in ETH 2.0's rollout, which should lead to further price discovery for ETH.
I'm a buyer on dips; I'm not a short-seller, nor am I selling this year or the next in all likelihood.
Support: Look for support at $500, which is above the major $400 inflection point and a price level ETH spent quite a bit of time consolidation around. There was quite a bit of chop around the $450-$500 level, so I expect that range to now act as support. This should be further buoyed by a rising 50 Day EMA currently around $425 and rising.
Resistance: Ethereum finally broke out in a significant manner, in only a few days moving from ~$450 to now above $600. ETH has had a lot of charged up buying pressure and momentum just waiting to release, and finally we're only just starting to see this come to fruition. I'm watching to see what happens around $600, and after that $700. Once ETH gets moving, especially with a potential bullish catalyst in less than 2 weeks from now, ETH can get some bullish footing and climb to the $1,000 figure just as quickly as Bitcoin did recently, and that was to the ATH.
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