Ethereum broke higher on Wednesday, cresting the $1,800 level and rallying to over the $1,900 level before closing the daily candle right around $1,900 even. This is exceptionally bullish as ETH broke above the local resistance around $1,800 and now has an open lane to the current ATH around $2,000.
(March 29, 2020 8:30 PM EST)
Short-Term:
Ethereum has an open lane to $2,000 now that it’s above $1,900 and has officially put in a local bottom as a higher low. This provides a runway to price discovery well above $2,000 probably up until about ~$3,100. Boosted by a recovering ETHBTC ratio, ETH has a LOT of room to gain in satoshis. Even a modest rally to 0.04 at current prices would send ETH to nearly $2,400, let alone a BTC breakout to $65K - $70K.
Once ETH shows an impulsive bullish candle close above $2,000, we should see a stampede higher to $2,500 and then $3,000. A breakdown below $1,600 would be troubling and could send ETH down to 1,400, challenging the overall uptrend.
ETH/BTC:
ETH/BTC continues its recovery as it bounces off its long-term support around 0.03. While ETH/BTC has been absolutely crushed and fallen through nearly every support level down to the 0.03 level, it's at least worth noting is that ETH has 1) bounced off 0.03, marking it as clear longer-term support and a higher low, and 2) broken above the 200 Day EMA. This is the first step before ETH/BTC can retest and eventually break above the 50 Day EMA around 0.032, which is the immediate-term target. A break above there would send ETH/BTC higher to 0.035, 0.038, and then 0.04.
From my perspective, all signs indicate it's probably wise to buy ETH or earn ETH now before prices continue to ascend in dramatic throughout the rest of 2021 and further. Buying ETH under $2,000 is like buying Bitcoin under $30K; not much higher than the previous ATH, and not likely to last much longer.
Support:
$1,600 which was tested and held, then 50 Day EMA around $1,550, then $1,500, then floor at $1,400.
Resistance:
$2,000, then $2,500, then $3,000. Pay more attention to the ETH/BTC ratio for resistance levels.
