Ethereum (ETH) broke sharply the uptrend channel formed since October 9. Right now, it is trading around the 200 EMA and a recovery is likely in the next few hours towards the level of 4,558.
The 200 EMA located at 4,299 indicates the possibility that Ethereum will continue to rise. A daily close below this moving average could be the start of a bearish scenario and could fall to the level of 5/8 of a murray which coincides with the psychological level of $ 4,000.
The fall of Ether in recent days is due to the strength of the US dollar and the uncertainty that exists in the crypto market regarding the Fed's cut in bonds purchases. These factors are weakening the optimism of the cryptocurrency market and it is likely that the technical correction continues in the coming weeks.
The market volume has fallen rapidly and now the eagle indicator is showing an oversold signal. Ether is expected to consolidate between 4,375 and 4,062 in the next few days. This could be the range as the market awaits the important data coming from the US for a new move that may be decisive for Ethereum.
A consolidation in the next few hours below the 200 EMA located at 4,299 will be a bearish sign and we can sell with targets towards the level of 4,062 (5/8).
If Ether manages to sustain and consolidate above the 200 EMA, it could gain momentum and give buyers optimism and we could see a recovery towards the 21 SMA (4,580). If this zone is broken, ETH could reach the level of 4,687 (7/8).
Our trading plan for the next few hours is to sell between the two levels below the 6/8 and below the 21 SMA and wait for a bounce around 5/8 to buy with targets towards the 200 EMA.
Support and Resistance Levels for November 16 - 17, 2021
Resistance (3) 4,633
Resistance (2) 4,478
Resistance (1) 4,402
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Support (1) 4,234
Support (2) 4,062
Support (3) 4,003
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A trading tip for ETH for November 16 - 17, 2021
Sell below 4,558 (SMA 21) or below 4,299 (EMA 200) with take profit at 4,062 and stop loss above 4,650.
The material has been provided by InstaForex Company - www.instaforex.com