Ethereum rallied again on Wednesday, continuing its breakout above $2,000 as we surge to new highs, closing the daily session around $2,500, a new daily high. This is extremely bullish for ETH as it continues to gain as it is historically still very undervalued against Bitcoin.
(April 15, 2020 8:30 PM EST)
Short-Term:
Compared to Bitcoin which is up more than 3x its 2017-2018 ATH, Ethereum is up less than 50% from its January 2018 ATH. That leaves ETH a ton of upside over the medium- to -long-term. In the short-term, we could see a rally to $3,000 as there's no significant resistance before then, but the real chart to keep your eye on is the ETH/BTC chart below which is approaching resistance. Additionally, the RSI is getting a bit overheated as ETHUSD is over 77, indicating an overbought level.
Looking at the ETH/BTC chart, ETH continues its surge against the satoshi, rapidly approaching the 0.04 level. We are back in a very bullish situation here as the late March bottom marks a higher low, giving the potential for a higher high. That being said, 0.04 was a moderately important resistance and support level earlier this year when ETH broke out against BTC, so we should expect some sellers to come in around there again. Ultimately, we are looking for an impulsive break above the 0.04 level which should take us to the 0.046 level and then 0.05, marking a higher high and the highest ETH/BTC level since 2018. Until then, we should expect some choppiness as ETH approaches 0.04, causing ETH's rally to pump the brakes a bit.
Otherwise, ETH/USD is trading at an ATH and is well above the 50 and 200 Day EMAs, giving us a picture-perfect secular bull market. Dips are to be bought, especially 30% corrections which are a regular occurrence in crypto bull markets as we have already witnessed multiple and all have been fantastic areas to buy value.
ETH/BTC:
Support: $2,000 and/or 0.035 ETH/BTC.
Resistance: $2,500, then $3,000. Keep an eye on 0.04 ETH/BTC.
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