Ethereum rallied on Tuesday, breaking decisively above the $1,400 level to spark a bullish breakout higher above $1,500, ultimately closing the daily candle around $1,533. This is of course a tremendously bullish as we have been anticipating as ETH breaks above a tougher than expected resistance level and closes the day near the highs in uncharted territory, forming a new ATH near $1,550 as we look to ride this momentum higher to $2,000.
(February 2, 2021 7:30 PM EST)
We got our breakout (finally)! Congrats to everyone who bought during the “boring” accumulation sideways action that was overshadowed by the Gamestop spectacle last week. It wasn’t a long wait, frankly, but the crypto crowd can sometimes be particularly impatient. Now we’re looking for continuation higher, as we’ve officially broken out of a rising channel and a contentious resistance level to a more significant ATH, which should help lift us closer to the $2,000 immediate price target. Once we reach $2,000, and that’s a when — not if — we could absolutely continue higher straight away — but I think it could serve as resistance as a large, round psychological number, so if ETH were to pullback there, I would contently look for a pullback to $1,400 — $1,500 to then find support, marking a higher low and officially declaring a new support level which would be a great area to reload longs for the run higher, as you can see my crude price path in the chart above.
Also, consider the ETH/BTC chart below. As you can see ETH officially broke out above the 0.04 ETH/BTC level on Tuesday after briefly breaching it last week before pulling back. However, today we got follow-through and closed safely above it in the green. From here, ETH should look to move higher, first to 0.05 and then 0.06, which would boost ETH/USD’s price to $1,700 and $2,000 respectively. As you can see based on today’s ETH/USD close, you can see we’re already on our way.
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: $1,200 is immediate support with $1,000 as stronger support. If ETH continues to break higher from here, we should see a new higher low support area develop somewhere around $1,300 to $1,400, but we’re not quite there yet.
Resistance: We’ve breached $1,500 so now we’re looking for an impulsive bullish candle to show followthrough, but our eyes are now on $2,000. EOY 2021 I think ETH could very reasonably be $3,000 — $5,000, but $7K — $8K is not out of the question once ETH holders lock up their ETH for staking rewards once PoS is live.