Ethereum fell a bit on Wednesday, pulling back to about the $1,700 level before bouncing a bit and closing the daily candle around $1,735. This is a neutral candle as ETH is in such a defined bull market and uptrend that small red or sideways days like today are simply dips to buy.
(February 10, 2021 8:30 PM EST)
Ethereum drifted a bit lower today, Wednesday, to end the day sideways to slightly negative but barely so in a boring market day for most of crypto. I view this as a dip to buy as Ethereum is in a well-defined uptrend, ascending channel, and even near the top of the channel, indicating that if Ethereum is likely to continue higher towards the $2,000 level and can even break higher from there. Not a whole lot to report on today with regards to that.
As you can see in the ETH/BTC chart below, ETH appears to have found support at the rough uptrend line drawn below, just above the 50 day EMA which is slowly turning upwards. Though ETH has broken back below in the 0.04 ETH/BTC level, it looks like a higher low and bottoming pattern is forming, and if ETH can find additional support around this level, can continue back up above 0.04 and continue higher, dragging ETH’s USD price higher in tow. Based on the recent price action in this chart, it looks like ETH/BTC smply made a big retracement to find support to continue this new uptrend.
My current strategy
HODL, buy the dips and earn ETH while we enjoy the ride. There's not much to do now other than sit back and let your investments grow. Otherwise, DCA on a weekly/biweekly basis, whatever you can afford if you so desire. 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 ~150% from its Jan. 1 price of ~$750.
Support: This has been all but confirmed; look for support around the $1,500 resistance region, which has been tested a couple of times since we broke higher and appears to offer buying pressure.
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.
