Dear Traders,
Today is the 17th December 2020, let’s get another market update released, and talk about some of the recent moves we have seen across the board. I hope this newsletter helps to explain in more detail my current bias for PA and where I think we could be heading over the coming days, weeks, and months!
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Ethereum Technical Breakdown
So first a good place to start would be ETH on the low timeframe, I think its important to look at the momentum that we have been building over the past week and just view how far we have come in such a short period of time. Just last week and especially over the past two weeks we was looking for a pullback and we did see that pullback into $575 and we loaded up some extra strength into our position. Since then we have seen this huge explosive move to the upside which has been written on not only the back of BTC break ATH but some other news that we will talk about soon.
At the moment you can see that LTF support is being maintained and price has held this $635 level very well as support which is important as this was previously the local range high. Flipping key levels like this into support is great to see and I actually personally added to my position on this retest yesterday. We see these long drawn out wicks to the downside that show buyers are confident with buying up price on any dip below $635 and right now the market is looking very healthy and bullish. No reason right now to think that there will be any further pullback from here, that said this level has to be respected as support, so make sure you have it aligned on your own charts.
Weekly timeframe is looking a little interesting at this moment in time, as we run into this HTF resistance level at $650 but honestly not very worried at the moment as I think there is a strong probability that the weekly close is above this level. We saw price easily get above this level this week so its not super strong resistance at the moment and it would not take many buyers to flip this level on a weekly timeframe. But still important to realize and see how this weekly candle closes if you are looking at building a HTF position. If i’m giving my personal opinion, buying sub $640 right now is pretty good as long as BTC remains above $21,000, if we see some huge correction in terms of BTC that be quick in closing any long position on ETH above $550. As likely this will spring a larger correction. Volume is looking good, everything else is looking good at the moment and there is no real reason to consider the current structure we are seeing a weekly candle as bearish.
Then taking a quick look at the monthly, I think its pretty clear that resistance target price has in mind, $800 looking like it will be tested at some point in the first quarter of next year. I think the current candle that is forming is looking super interesting and bullish, I have a very strong feeling that spot buys at currently price are good going into 2021. Im expecting next year to print brand new ATH’s for Ethereum.
In other news from a few days ago, I shared that the CME futures would be launching for ETH on February the 8th. A statement from CME “Ether is based on formidable blockchain technology and the CME CF Ether-Dollar rates will provide a standardized reference rate and spot price index to bring confidence to any trading strategy. Major cryptocurrency exchanges Bitstamp, Coinbase, Gemini, itBit, and Kraken provide the pricing data to bring our dependable and regulated rates to the market.”
Pretty big news for ETH, BTC has had a futures for some time now and it will allow a lot more people and traditional investors to be able to get interested and invest in the price of Ethereum. Even though there are currently a lot of other partnerships that are opening up easy access for traditional and insitional investors, I personally think that ETH have a CME products is super important and it certifies ETH’s place as a investment opportunity. I think 2021 will be a huge year for Ethereum and I have a lot of hope that we see huge amounts of onboarding and user adoption far greater than we have seen in 2020, and 2020 has been pretty life changing for the project itself.
Thanks, everyone for tuning into this newsletter edition, if you found it helpful then please do share or leave a comment with any questions below. Thanks for the continued support and please do signup with your email address if you are new here!
Thanks, Cactus