Ethereum is currently trying to settle above the $4,770 resistance level while Bitcoin is stuck in the $56,000 to $57,700 range.
Powell’s Comments Have Had No Impact on Ethereum
Talking about inflation on November 30, Fed Chairman Jerome Powell explained that it was time to “eliminate” the term “transitory”, adding that the Fed was expanding its asset purchase program to shorten faster.
These comments put riskier assets under pressure as Fed support is one of the main catalysts for recovery from the pandemic lows.
Interestingly, Powell’s comments have had no material impact on Ethereum, which continues to move towards the highest level in history. At this point, Ethereum’s upward momentum is very strong and it seems that testing historical highs is almost inevitable.
Other leading cryptocurrencies have hybrid dynamics. After Bitcoin failed to close above the 50 EMA at $58,300, Bitcoin fell below the $57,700 support level. Bitcoin’s most recent support is at $56,000. If Bitcoin hits this test level, other coins could come under pressure too, but it remains to be seen whether such a move will harm Ethereum.
At the same time, Shiba Inu fell below $0.000050 after the recent rebound, trying to stabilize below the $0.00004450 support level. After failing to test the 20 EMA of $0.2265, Dogecoin also lost momentum and tried to level below the $0.2150 support. Solana is currently trying to stabilize above the $216 resistance level while XRP is testing the $1.00 resistance level.
ETH Technical Analysis
Ethereum successfully broke the $4,650 resistance level and attempted to break the next $4,770 resistance level.
ETH/USD Daily Chart. Source: TradingView
If Ethereum manages to stabilize above this level, it will move to the next level of resistance, which is at an all-time high near $4,865.
A successful test of the $4,865 resistance level will push Ethereum to an important psychological price of $5,000.
In terms of support, the previous resistance level of $4,650 will serve as the first level of support for Ethereum. If ETH falls below this level, it will move towards the support level of $4,535. A break below this level will pave the way to test the 20 EMA support level at $4,380.