Ethereum rallied a bit on Thursday, reaching back above the $1,800 level to challenge yesterday's ATH before pulling back, closing the daily candle just below $1,800 around $1,775. This is a bullish candle as ETH continues to press higher in its quest for $2,000, which is well within reach and just a matter of time now.
(February 11, 2021 8:30 PM EST)
Ethereum rallied a bit on Thursday, nearly reaching up to yesterday's ATH again before closing just below $1,800. ETH continues its slow grind higher towards $2,000 as it plays second fiddle to BTC which continues to exert its market cap dominance in all of crypto, corresponding to an ETH/BTC selloff as shown below. ETH should continue higher, as it's in a well-defined uptrend, trading within an ascending channel pointing to higher prices, and a bullish breakout out of the channel could send ETH well above $2,000 and possibly even closer to $3,000 before finding any meaningful resistance. The RSI is barely overbought, as it is almost constantly is during crypto bull markets, leading us to believe that there is much room to rally yet. When BTC breaks higher, which seems like it could be any day now, ETH could very well follow suit and tag along for slightly less intense gains as ETH appears to be traded and valued almost separate from other altcoins as it is 'the' altcoin and the second-largest cap in all of crypto, so much so in fact that in periods of hyper bullishness near the end of crypto cycles, ETH has historically made impressive rallies against satoshis, inspiring thoughts of a possible "flippening." I don't forsee that being realistic anytime soon, if ever, however that's not to say ETH can't be the clear-cut #2 crypto, as the two assets are actually quite different and serve totally different functions.
As you can see in the ETH/BTC chart below, ETH is struggling down below the 0.04 area, trading sideways and hovering just above the ascending trendline crossing through 0.037, which ETH/BTC touched today. This recent pullback is not the end of the world, as the uptrend is still well in tact. However, if ETH/BTC breaks below the ascending trendline drawn in the chart below, then the uptrend is in jeopardy and a break below the 50 Day EMA would all but invalidate it. ETH/BTC needs to find support, as Bitcoin appears to be growing stronger and ready to burst higher as it approaches $50K.
My 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. Historical charts and models all point to 2021 being substantially better for crypto and ETH in particular, although ETH has outperformed BTC in 2020 so really it's no surprise there. ETH returned over 400% in 2020, and if the models suggest ETH (and crypto in general) to outperform in 2021, then we can possibly expect a greater than 400% return in 2021, pointing to a high of somewhere between $3,000 - $4,000. It's worth noting that YTD, ETH is currently up 150% from its Jan. 1 price of $750.
Support: This has been all but confirmed; look for support around the $1,500 resistance region, which has been tested a couple of times since we broke higher and appears to offer buying pressure.
Resistance: All eyes are now on $2,000, then $2,500. The former would be a clean resistance level, though crypto is rarely clean so we could see a stronger momentum push up to $2,500 or possibly even $3,000.
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