In the last hours, Ethereum (ETH) has lost more than 12% due to risk aversion on the part of investors and the increase in panic regarding a new variant of Covid.
According to the 4-hour chart, it can be seen that Ethereum is consolidating around the psychological level of $ 4,000. It is likely that in the next few hours, there is a technical bounce towards the 21 SMA located at 4,277.
Around the 21 SMA will be a good opportunity to sell ETH targeting 4,039 to 4/8 murray at 3,750.
On the other hand, if Ethereum consolidates below the key level of 3,900, we could see acceleration of the downward movement towards the pivot point of 3,750.
After breaking the uptrend channel on November 15, Ether has been testing this resistance more than 3 times. Because it failed to break, it is now retreating and it is a sign that in the short term we could see a drop to the level of 3,500.
Considering the bearish outlook for BTC, the price of Ethereum is expected to follow the same trend and fall to the demand zone around 3,750.
Our trading plan for the next few hours is to sell in case of a pullback to 21 SMA (4,277) with targets at 4,065 and up to 3,750. On the contrary, if it consolidates above the 21 SMA at 4,300, we can buy with targets towards 4,687 (7/8).
Support and Resistance Levels for November 26 - 29, 2021
Resistance (3) 4,596
Resistance (2) 4,327
Resistance (1) 4,159
----------------------------
Support (1) 4,062
Support (2) 3,750
Support (3) 3,542
***********************************************************
A trading tip for ETH November 26 - 29, 2021
Buy above 4,062 (5/8) with take profit at 4,277 (200 EMA), stop loss below 3,920.
The material has been provided by InstaForex Company - www.instaforex.com