Ethereum rallied again on Friday, pushing up to a new high on some exchanges around $1,880, going into the weekend near the highs north of $1,850. This is a bullish formation, pattern, and trend on all timeframes as ETH grinds higher by the day towards $2,000, which is within our grasp any day (or weekend?) now.
(February 12, 2021 7:30 PM EST)
Outlook:
ETH Continues higher as it presses towards the $2000 mark for the first time, which could happen even over the weekend. If that’s the case, then we could see ETH surge through the level and continue higher before the Monday and Tuesday market traders return to their desks, although Monday is a federal holiday in the US so there may be like trading that day as well. ETH may also find resistance around the $2000 level which is to be expected, which could cause some volatility and maybe short-term resistance. If that’s the case, then any resulting dips are likely to be good value opportunities.
The daily churning of bullish news and developments in the crypto space continues as ETH continues to evolve In the background amongst all the news flow noise. Today the ETH 2.0 deposit contract tops $5.5 billion staked in Ether. ETH and WETH are now settling more value than Bitcoin, including over $8 billion in Bitcoin itself. It’s also reported that Grayscale purchased over 50,000 ETH in the last 24 hours as institutional and individual investor demand continues to explode, adding to the supply shortage of Ether that has been known for a few weeks now. There continues to be a lot of concern around ETH network fees due to record usage of transactions, however, it is widely known that the ETH 2.0 network upgrade is specifically designed to address this and enable a generational scalability solution making the Internet of money transactions exponentially cheaper than they are today, and we are expecting the next phase of ETH 2.0 to roll out by end of year 2021.
As you can see in the ETH/BTC chart below, ETH has held onto the trendline, hugging it tightly but slowly ascending along with it on top of it. This is a bullish sign as ETH continues to be not only putting in a bottoming formation but that also means a higher low. As long as ETH holds onto this level and bounces off any attempts lower, such as the 50 Day EMA, then ETH should continue higher back above the 0.04 ETH/BTC level and then continue to 0.05 and above.
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.
Support:
$1,500 - $1,400 (likely), then $1,200 (less likely), then $1,000 (concrete floor).
Resistance:
Immediate-term $2,000, then $2,500, then $3,000.
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