Ethereum continued its breakout on Wednesday, breaking above Monday's high and reaching up above the $1,200 level, printing a new local and multi-year high, closing the daily candle just under $1,200. Given ETH's monster late weekend breakout, the second-largest cap crypto has been on a tear, nearly doubling in four days, quickly approaching the arbitrary January 2018 high of $1,400.
(January 6, 2020 8:30 PM EST)
Ethereum rallied again, continuing its weekend breakout and moving higher, decisively chopping through rarely-seen price levels only seen for a few days in ETH's history. I think it's extremely likely that ETH will outperform Bitcoin in this bull run and not only crush the previous ATH early in 2021, but almost resemble Bitcoin's mid-2017 runup which affirmed the crypto firmly in the four-digit price range. Ethereum, too, shall follow in the wake of exponentially more buyers and appreciation relative to fiat inflation.
From here, I think ETH will run up to $1,400 and then $2,000 probably without much resistance, and then higher in a climb to $3,000, $5,000, and five-figures. If ETH pulls back, look for support around $1,000, which will probably hold but if it doesn't, then look for buyers to step in at large round numbers: $900, $800, and an absolute floor around $700; I think those days are probably gone for good.
ETH is now only a few hundred dollars short of its January 2018 ATH of $1,400, which is a pretty arbitrary ATH and price level. Accordingly, I think it's only a matter of time (not much) before ETH slices through that level and springs up to $2,000 and above.
I think the best strategy here is to buy the dips and even earn ETH wherever possible. Otherwise, DCA is the way to go and possibly store some dry powder for another 'larger' dip if we're lucky enough to get one in Q1 2021. I think 2021 will be substantially better for 2021, although ETH has outperformed BTC in 2020 so really it's no surprise there.
Support: Look for local support around $1,000, which is untested but as ETH continues to exhibit bullishness and prints higher highs, higher lows will likely follow. More importantly, however, I think now is the time to watch the ETH/BTC ratio for support instead of the USD pairing. The USD pairing is not the sole factor in terms of support and resistance; in fact, 0.03 could be a critical support level which may equate to an arbitrary US Dollar price level.
Resistance: If ETH can hold onto $1,000 and grind higher, ETH should continue higher and then we can start talking about new ATH's, as I doubt there's much resistance between $1,000 and $1,400. $1,200 is my immediate-term point of interest, followed by the ATH at $1,400, and then $2,000.
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