Ethereum in Bullish Accumulation Zone (ETH 2/18/21 Forecast)

Ethereum rallied on Wednesday, breaking back above the $1,800 level and closing the daily candle near the highs as the entire crypto space was a sean of green today in lieu of Bitcoin’s break above $50K. This is a bullish candle, of course, which bodes well for ETH as it points to higher prices, and ETH is of course still tracking an ascending wedge pointing to $2,000 and above.

(February 17, 2021 7:30 PM EST)

Outlook:

ETH recovered nicely today, rallying firmly to break above $1,800 and yesterday’s high, indicating a possible break in the early-week short-term downtrend. If we see another higher high and higher low tomorrow, then what might have been the start of a correction down may be invalidated, implying ETH is heading higher directly from here! In fact, if you compare Bitcoin’s daily chart to ETH’s above, you’ll notice a very similar looking ascending channel/wedge, which today resulted in a BTC breakout higher. I portend that ETH’s chart implies the same will happen in short order, too.

ETH currently reminds of when it was hovering in the $1,100 — $1,350 zone about a month ago, chopping higher towards the ATH in a clear ascending channel, lagging behind BTC which had already long ago broke out higher to new highs, indicating ETH’s turn was next. I think we’re in that same clear “accumulation zone” before the breakout right now, and buyers will likely be rewarded for buying sooner than later.

ETH/BTC:

As you can see in the ETH/BTC chart below, ETH fell again on the daily chart, slipping briefly under the 50 Day EMA before the buyers stepped in, ultimately closing the daily candle just at the 50 Day EMA. This is a bad look as ETH/BTC is in a nasty-looking short-term downtrend and, if it breaks below the 50 Day EMA, the next logical support area would be the 200 Day EMA around 0.031. If that holds, however, the uptrend is still technically valid as it would be a higher low, but for now we’ll have to watch and see what happens with Bitcoin’s price action as crypto’s megacap just broke out above $50K today and is likely to head higher.

Historically, this ETH/BTC is very low for ETH and typically offers excellent value for ETH and a favorable risk-reward ratio as an investment opportunity, as we are in a clear crypto bull market and, with ETH closely lagging behind BTC, following this recent breakout, ETH should follow in tow. For longer-term perspective, if ETH tops around 0.1 ETH/BTC during this cycle at the current BTC price, which is a conservative ratio top compared to previous cycles, would equal $5,200 ETH. But I think there’s plenty of gas left in the tank.

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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Originally published at https://www.publish0x.com.

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