Ethereum rallied during the week ending January 24, originally pulling back with Bitcoin before recovering, divering from Bitcoin and rallying to finish the week near the highs! This is an interesting development as ETH appears to have possibly decoupled from Bitcoin as ETH not only pulled out a positive weekly candle but breaking out above the 0.04 ETH/BTC ratio.
(January 24, 2020 7:30 PM EST)
Outlook: Ethereum rallied last week, finishing the weekly trading session near the highs around $1,300 as it appears to be attempting to break higher. Whereas Bitcoin sold off last week and looks to be heading lower, ETH appears to have broken its close correlation to BTC and is now trending higher. This happens sometimes during bull markets as Bitcoin tends to plateau, allowing some capital to rotate into smaller caps, inducing mini "alt seasons." This could be the case for ETH as it remains under its ATH, only briefing peeking its eyes above it for a brief moment before pulling back.
As you can see in the ETH/BTC weekly chart below, ETH has broken out above the 0.04 level, the first level of resistance on the longer-term charts which opens up the gates to the 0.06 ETH/BTC level. If ETH can hold the 0.04 level, we should head higher from here and would equate to a roughly $1,920 ETH/USD price, providing ETH with the spike it needs to break out higher from this resistance range.
It is still possible but apparently increasingly less likely that ETH does a head-fake and immediately dips lower to follow BTC in a ~30%+ correction lower. However, the deeper ETH pulls back, the stronger the bounce will be as no one in their right mind would short ETH at lower levels when it's in a clearly defined uptrend and crypto bull markets are notoriously neck-breaking, especially given the prospect of ETH outperforming BTC during this bull market and going forward. Going forward, I think all signs indicate it's smart to buy ETH or earn ETH however possible.
Support: If ETH does pull back, I'm looking for support somewhere between the $850 - $1,000 level. I'm looking for heavy support around ~$850 as I want to add to my position sub-$1,000 before ETH bounces higher again -- that opportunity may have already passed!
Resistance: It all comes back to $1,400, the previous ATH and marginally underneath the new/current ATH around $1,450, which is a completely arbitrary number. A whale or group of whales have recently put up a humongous sell wall around $1,250 recently but it appears we were able to slice through it. Once ETH breaks above $1,450, I think it's a quick shot to $1,500 and then $2,000.
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