Ethereum rallied again on Tuesday, following through on Monday's breakout above the $2,000 level and rallying up to the current new ATH around $2,150 before pulling back a bit, closing the daily candle around $2,090. This is extremely bullish as ETH continues to grind higher and dips get bought up, leaving ETH plenty of upside to continue to explore.
(April 6, 2020 8:30 PM EST)
Short-Term:
Ethereum resumes price discovery mode as it's broken above a major resistance level, thus opening the door to higher and more meaningful four-figure price levels. There is no significant resistance until $3,000, giving ETH an open lane for some time. In fact, if ETH is following BTC's H1 2017 trajectory, then we could see a Q2/Q3 next wave up to $5,000 before any meaningful pullback before the end of year rally. Of course, that's assuming things play out similarly to 2017 - which is not guaranteed, but not impossible either. Markets are psychological, so the charts don't lie.
ETH has broken out while BTC continues to sputter around just below the $60K level, giving ETH and altcoins an edge right now as the sector rotates into alts. ETH is the primary beneficiary of this as it is the premier 'altcoin.'
ETH/BTC:
ETH/BTC broke out above the 0.035 level, rallying to about the 0.0363 level before closing the daily candle in a bullish turn of events. This all stems from ETH's ability to find support at the long-term support level around 0.03 where it bounced and has since gone on a run of 0.006 and counting. If ETH/BTC can stay above the 0.035 level, we should see a rally to the the 0.038 and then 0.04 levels. 0.04 will be significant resistance as it has been in the past; however, our March low could very well prove to be a higher low on the daily chart in which case the stage could be set to see an ETH rally against BTC up to the current cycle high around 0.048 and above 0.05.
I'll be looking for tentative support around 0.035, and below that the 50 Day EMA around 0.033 which now gives us the wind at our backs.
Support:
If ETH holds onto this breakout or continues higher, $2,000 should be our new local support. Below that, support around $1,800 and then the 50 Day EMA around $1,650.
Resistance:
$2,000 has been broken, so next immediate target is $2,500, then $3,000.
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