Ethereum Price Prediction: EMA Choppy Session Continues at $4,275 - Forex News by FX Leaders
Ethereum - ETH/USD Chart

Ethereum Price Prediction: EMA Choppy Session Continues at $4,275

Posted Thursday, November 25, 2021 by
Arslan Butt • 2 min read
ETH/USD closed at $4270.0, with a high of $4372.80 and a low of $4171.89. On Wednesday, ETH/USD reversed its momentum and dropped amid the prevailing negative market mood. The leading currencies, BTC and ETH, faced heavy selling pressure on Wednesday after many countries showed concerns and started planning to ban cryptocurrencies. News of potential new regulations on cryptocurrencies by India and Norway added to the negative trend followed by the market and dragged ETH/USD to the downside.

ETH/USD

After China banned all cryptocurrency mining activities, Norway became the most popular destination for mining operations. Now, Norway has issued a warning that it might ban mining activities for digital assets based on increased concerns about energy consumption. In addition, the chairman of the country has raised concerns over the energy consumption of proof-of-work (PoW) crypto mining and said that the issue must be taken care of as soon as possible. For this purpose, the government is looking into ways to ban crypto mining operations in the country. Meanwhile, the Indian Parliament also introduced a new regulatory law that will ban all private cryptocurrencies in the country and approve the creation of official digital currency. This law negatively impacted major crypto exchanges in the country, which in turn added downward pressure on ETH/USD. All these negative news reports from around the world have dragged the market mood surrounding the cryptocurrency industry.

Meanwhile, the latest warning issued by the IMF regarding the concerns of financial instability in El Salvador, given its decision to make bitcoin legal tender, also added to the negative market trend followed by the market. The agency said that there was no doubt that bitcoin and other digital assets provide efficient payments, but they could be a threat to the country’s financial system if one makes them legal tender. This warning added to the further loss in ETH/USD on Wednesday.

Moreover, Ethereum implemented the London hard fork upgrade about 111 days ago. The upgrade added a mechanism that changed Ethereum’s fee rate to a new scheme that makes the crypto asset ether deflationary. Since then, 1 million ETH has been burned, and this news kept the declining prices limited for the session on Wednesday.

Ethereum Technical Outlook – ETH/USD Supported Over $4,216

ETH/USD is currently trading at a 4,241.54 level with a 24-hour trading volume of $21,465,441,212. Unlike bitcoin, Ethereum stayed steady at $4,300. Once it clears the $4,325 and $4,350 resistance levels, ETH may gain further positive momentum. There was a clear break above the $4,200 resistance zone and the 100 hourly simple moving average.

On the hourly chart of ETH/USD, there was also a break over a strong negative trend line with resistance above $4,205. The pair rose beyond the $4,300 barrier zone, reaching a high of $4,386. It is currently reversing gains below $4,300. The upward rise from the $4,026 swing low to $4,386 high was broken below the 23.6 percent Fib retracement line. If Ethereum does not begin a new upward trend over $4,350, it may start a new downward trend.

Ethereum - ETH/USD Chart

Daily Support and Resistance

Support Resistance
4170.32 4317.23
4070.65 4472.47
3969.41 4572.14
Pivot Point: 4271.56
On the downside, $4,220 serves as an initial support level. On the same chart, there is a connecting bullish trend line of about $4,220. Let’s consider staying bullish over 4,220 and vice versa. Good luck!
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments