Ethereum rallied again on Friday, surging above the $1,700 level for the first time and reaching above the $1,750 level for a fresh all-time high before closing the daily candle just above $1,700. This is, of course, a bullish candle as we head into the weekend with ETH slicing its way to the $2,000 level which is the next logical resistance level.
(February 5, 2021 7:30 PM EST)
Ethereum continued its ascent Friday, finding buyers on dips and climbing to higher highs to end the week on a high note. We are in uncharted territory here as there is no historic or discernible resistance between ~$1,500 and $2,000, which may be purely psychological. If you consider the ETH/BTC ratio as shown in the chart below, the next resistance level would be 0.05 ETH/BTC and then 0.06, which, at current BTC price of $37,500, would equal $1,875 and $2,250, respectively. At this time we'll have to rely more heavily on the ETH/BTC for resistance levels until ETH retraces or develops some sort of range. Ethereum is still quite a ways from a $1 trillion market cap, at currently less than $200 billion. With the current circulating ETH supply, if ETH were to find resistance at a $1T MC, ETH would be roughly $8,700; quite a large difference from today's price.
In the meantie, we continue to HODL, buy the dips and earn ETH however possible. Otherwise, DCA on a weekly/biweekly basis, whatever you can afford. Historical charts and models all point to 2021 being substantially better for crypto and ETH in particular, although ETH has outperformed BTC in 2020 so really it's no surprise there. ETH returned over 400% in 2020, and if the models suggest ETH (and crypto in general) to outperform in 2021, then we can possibly expect a greater than 400% return in 2021, pointing to a high of somewhere between $3,000 - $4,000. It's worth noting that YTD, ETH is currently up ~125% from its Jan. 1 price of ~$750.
Support: This has not been confirmed yet but look for support around the $1,400 - $1,500 resistance region which should become new higher support, which will be confirmed with a test on a retrace at some point during or after this push higher.
Resistance: All eyes are now on $2,000, then $2,500. The former would be a clean resistance level, though crypto is rarely clean so we could see a stronger momentum push up to $2,500 or possibly even $3,000.
