Looking at the 4-hour Ethereum (ETH) chart, we see temporary horizontal resistance between 194 and 197.

It makes sense for Ethereum (ETH) to take a day or two to consolidate yesterday's impressive gains. We believe that dips in Ethereum (ETH) will be limited going forward. A pause in ETH near 194 and 197 would be an opportunity to add to long positions.

Looking at Elliot wave work, we see the minimum upside target for Ethereum (ETH) is the top of the previous 4th wave near 225. After significant declines, it is typical for a market to rally to the point where the final crash of the downtrend started. Elliot Wave jargon for this is a rally back to the "previous 4th."

Bottom Line: We are bullish on Ethereum (ETH). If crypto rallies, we think Ethereum (ETH) can dramatically outperform other cryptos on the upside. Take advantage of sideways days to add to longs.

DISCLOSURE: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice. The Token Metrics team has invested and advised in many blockchain companies. A complete list of the team disclosures, advisory roles and current holdings can be viewed here: https://blog.tokenmetrics.com/disclosures/.