Ethereum rallied during the week ending December 6th, resurfacing above the $600 level to put in a new local high before retreating a bit but closing the week in the green. Ethereum continues its uptrend on the weekly chart as shown below, finding resistance but shielding it off as Ethereum grinds its way back from the depths of the 2018-2019 bear market.
Outlook: Interestingly, ETH has nearly crossed a fib level and appears to be targeting the 50% Fibonacci retracement at ~$732. I think a continuation of this current rally above $600 with an impulsive candle to the 50% fib makes a lot of sense, as ETH is lagging quite far behind BTC in the late 2020 recovery rally/early stages of a new bull market. The ETH/BTC ratio remains quite stretched at just over 0.03 ETH/BTC, ranging near the bottom of the long-term range between the two largest-cap crypto assets.
To add even more intrigue, if you saw my recent Ethereum Monthly Forecast (January), you saw my analysis of how ETH looks to be setting up for a massive bullish breakout on the longer-term charts that will crush ETH's January 2018 high. This, in confluence with the weekly chart's seemingly bullish breakout pattern now developing, points to ETH making a rapid recovery up to the $1,000 level or higher in the not so distant future, most likely in H1 2021.
I'm a buyer on short-term dips - from a long-term perspective, I think ETH under $1,000 is great value, so to be able to get ETH under $600 is still a great discount - even in the medium term!
Support: I'm looking for support around the $500 level, then $450 and ultimately $400, which is my line in the sand. The 50 Week EMA is turning up and approaching the $350 level, which should give further support to $400 as it continues to rise.
Resistance: $600 is the immediate resistance, and I need an impulsive candle above it and holding it to prove a sustained rally. After that, $700, $800, and $1,000. After $1,000, ETH will probably start to trade similar to Bitcoin a few years ago where it starts moving in larger increments as investors inflows dwarf the market cap, causing rapid price discovery and causing euphoric jumps in price.
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