Ethereum (ETH) broke sharply the uptrend channel formed since October 9. Right now, the crypto is trading below the 200 EMA (4,500) and a decline is likely to happen in the next few hours towards the level of 3,750.
As Ethereum is below the 21 SMA located at 4,500, it indicates the possibility that it will continue its fall. Ethereum is expected to continue its correction movement in the next few hours towards 4/8 of murray at 3,750.
On October 10, Ether managed to break and consolidate above the 21 SMA. It was trading above this moving average until November 16, when it broke below and now expectations are negative.
As long as ETH trades below the 21 SMA and below the 6/8 murray, there is a possibility that it will continue to fall and could reach the 200 EMA located at 3,169 in the medium term.
The eagle indicator touched the 95-point zone on November 7 that is an extremely overbought mark. Ether is likely to continue trading below the high of 4,863 and could continue the correction in the next few days.
Our trading plan for the next few hours is to sell between the two levels below the 21 SMA (4,500) and below 6/8 of murray, with targets at the psychological level of 4,000 and up to the level of 3,750 which represents a key support.
Support and Resistance Levels for November 18 - 20, 2021
Resistance (3) 4,437
Resistance (2) 4,344
Resistance (1) 4,234
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Support (1) 4,062
Support (2) 3,962
Support (3) 3,869
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A trading tip for ETH for November 18 - 20, 2021
Sell below 4,200 or if pullback to 4,500 (SMA 21) with take profit at 4,062 and 3,750 (4/8) and stop loss above 4,320 and 4,610.
The material has been provided by InstaForex Company - www.instaforex.com