Ethereum rallied during the week ending November 8th, breaking above the $400 level and scratching the $450 level, settling in near the 2020 highs. Ethereum seems locked and loaded for a bullish move up of its own against Bitcoin which has stolen the show thus far.
(November 8, 2020 8:30 PM EST)
Outlook: Ethereum followed Bitcoin's lead a bit this past week and broke out to the upside, rallying above the all-important $400 level and reaching up towards the 2020 highs around $450-$500. ETH settled near the highs on the week, indicating a bullish spillover into this coming week is very possible. I would not be surprised to see a slight retracement, as Bitcoin simply controls the crypto market dominance right now which causes alts to bleed in satoshis, and ETH has moved in smaller increments up in relation to Bitcoin. However, Bitcoin's exacerbated rally recently points to it becoming a bit overbought and possibly exhausted soon, which might yield some opportunity to ETH to catch up in price a bit.
With ETH 2.0's deposit contract officially launched and millions of ETH being committed to stake, Ethereum is starting to validate its long-awaited and speculated hype for a layer-2 scaling solution and a proportionately exponential rise in price. At these price levels, I fervently contend that ETH is still undervalued, especially against BTC, and is a more attractive buy than Bitcoin right now given the price lag ETH suffers from, like all other alts. I'm bullish on ETH, and am a buyer on dips, and even DCA on a weekly basis - I liken ETH right now to buying Bitcoin between $6,000 - $7,000 earlier this year.
Support: Look for support at the $400 level which is a major historical price level and an inflection point, with lower prices indicating a downtrend and higher prices an uptrend. Below that, look for support around the $350 level and then $300, which is both supported by the 50 Week EMA sitting a few dollars underneath and a large, round psychological number.
Resistance: $450 is my near-term resistance, with an impulsive move higher and a corrective pullback finding support validating that. $500 is my true resistance right now, it being a large, round psychological number and the last real historical resistance level before ETH is officially in a bull market and can grind higher towards four figures. There are other levels between $500 and $1,000, though they are less significant and mostly Fibonacci levels.
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