Tracking ETH’s Wave 3 Price Target (2/21/21 Weekly Forecast)
Ethereum again last week, initially falling early before quickly bouncing off previous resistance and reaching up to new highs, nearly grazing the $2,000 level. This is, of course, bullish as ETH prints yet another higher high and forms a new ATH as ETH works its way up to the $2,000 level for the first time, which we may see as early as this week.
(February 14, 2020 8:30 PM EST)
Outlook: Ethereum continues its grind higher towards $2,000, its immediate-term target and a major milestone as ETH looks to ascend into the multi-four-figures for the first time in this next market cycle higher. In many ways, ETH appears to follow BTC inexactly as ETH interestingly mimics BTC’s previous market cycles, following a similar price cycle up and down, and even somewhat tracking the same highs and lows. Now, if that was the case, then ETH is in the early stages of Bitcoin’s 2016–2017 cycle, which, of course, Bitcoin topped around $20K. Now, that’s not to say that ETH has to follow BTC to $20K exactly like BTC did, however, it wouldn’t be unusual for ETH to track a similar trajectory up to $10K or so and maybe even wick higher on a blowoff top, depending on the intensity of the impulsive Wave 5 late in the cycle.
As you can see in the chart above, my primary view is a minimum $2,000 price target that could extend up to $3,000 depending on the magnitude of this breakout; based on the heightened inflows into crypto before and now especially after the Gamestop v. Wall Street war, conservative projections can and likely will be exceeded. This price target can fluctuate, however, as we are in uncharted territory now with no historic resistance levels to rely upon. Accordingly, we will now be more heavily monitoring and relying on the ETH/BTC ratio, which measures Bitcoin market dominance vs crypto, or in this particular case, Ethereum. Historically, the ETH/BTC ratio trades between the 0.04 and 0.08 level, and typically peaks during bull markets north of 0.10 ETH/BTC, so as you can see based on this ratio, ETH is quite low historically in this respect; though rising. As far as price targets go, 0.05 and more importantly 0.06 are our immediate price targets, which at a roughly $49,000 BTC would equate to $2,450 and roughly $3,000 respectively.
From my perspective, which is predicated heavily on fundamental and technical data as shared with all of you, all signs indicate it’s probably wise to buy ETH or earn ETH now before prices continue to ascend in dramatic throughout the rest of 2021 and further.
Support: Look for immediate support around $1,400 — $1,500 which was a previous resistance level.
Resistance: Iimmediate-term price target and resistance of $2,000. Above that, look for resistance around $2,500 and then $3,000.
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Originally published at https://www.publish0x.com.