On March 2, the price of Ethereum (ETH/USD) reached the psychological level of $3,000. It is currently trading below the 200 EMA and below the downtrend channel formed since January 11.
Ether failed to break the 200 EMA and is currently trading at 2,944 below that level. A technical correction towards the support 1/8 Murray around 2,812 is likely in the next few hours. A break of the 21 SMA could accelerate the bearish move towards -1/8 Murray at 2,187.
The Fed's monetary policy was under the spotlight on Wednesday, with Fed Chairman Powel's speech. His words were not straightforward. However, he was rather cautious and said that at the end of this month there could be an increase in the interest rate. This information boosted the demand for riskier assets, driving the price of Ether and BTC to rise.
The FED chairman added that he is in favor of a 25-basis point rate hike in March and then raising the interest rate with larger and more frequent points if necessary. It seems that the market has already discounted this 25-point increase. Therefore, we see a recovery of BTC and Ether. Despite the war between Russia and Ukraine, investors are optimistic.
According to the daily chart, Ether has a negative outlook as it is below the 200 EMA and below the strong resistance of 2/8 Murray. If ETH trades below the psychological level of 3,000 in the next few days, we will have an opportunity to continue selling with targets towards 2,180.
Conversely, with a daily close above 3,150 and above 200 EMA, ETH is likely to gain strength and could hit 4/8 of Murray around 3,750.
Our trading plan for the next few hours is to wait for a pullback towards the zone 3,150. Or we could sell if the price of Ether breaks the 21 SMA below 2,800, with targets at 2,500 and 2,187. The eagle indicator is giving a neutral signal.
Support and Resistance Levels for March 03- 04, 2022
Resistance (3) 3,149
Resistance (2) 3,166
Resistance (1) 3,039
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Support (1) 2,779
Support (2) 2,591
Support (3) 2,300
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Scenario
Timeframe Daily
Recommendation: sell below
Entry Point 3,000
Take Profit 2,500; 2,187
Stop Loss 3,175
Murray Levels 3,750(4/8), 3,437(3/8) 3,125(2/8), 2,812(1/8)
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