Ethereum rallied a bit on Thursday, going back and forth between $1,550 and $1,700 levels before ultimately closing the day slightly positive around $1,650. ETH may find pockets of resistance around round, whole numbers in $100 intervals as it rises, similar to Bitcoin in late 2016/early 2017, however, the overall trend is up; no sense in trying to fight it.
(February 4, 2021 7:30 PM EST)
Ethereum continues higher as continues its bullish breakout above the $1,400-$1,500 resistance area, now in uncharted territory. There are a whole host of bullish fundamentals, technicals, and meta factors that support the increased demand and higher prices we are now seeing, so it is no surprise that $2,000 is on our radar, and frankly, this implies any dips are buying opportunities. In the meantime, we are on a climb higher to $2,000 which is a large, round psychological number. We don't have historical resistance levels to compare now so all we can speculate on is based on market psychological, market cap, ETH/BTC ratio, and Fibonacci extensions, at least half of which are self-fulfilling prophecies. That's not to say they cannot be helpful or sometimes accurate, but in reality, why bother sweating the smaller swings when you can simply HODL to exponentially higher prices, as we have been doing since the bottom in 2019? Now, all we're doing is adding to our already-accumulated stack to maximize our exit when we approach our longer-term price targets, which are likely a year away from now or so -- we may have a better idea in Q3.
Simple strategy: Buy the dips and earn ETH however possible. Otherwise, DCA on a weekly/biweekly basis, whatever you can afford. 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.
Support: This has not been confirmed yet but look for support around the $1,400 - $1,500 resistance region which should become new higher support, which will be confirmed with a test on a retrace at some point during or after this push higher.
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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