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Ethereum Retreats Amid Global Market Sell-Off

Ethereum Declines As Traders Rush Out Of Riskier Assets

Ethereum failed to settle above the resistance level at $4,535 and pulled back towards the 20 EMA at $4.310 as global markets found themselves under strong pressure.

News about the new variant of coronavirus from South Africa have triggered a real panic. Traders rushed to safe-haven assets and sold riskier assets. Cryptocurrencies have also found themselves under material pressure.

Bitcoin failed to settle above the 50 EMA at $58,700 and moved back below the $57,000 level. The nearest material support level for Bitcoin is located at $56,000. In case Bitcoin declines below this level, it will gain additional downside momentum and move towards the next support level at $53,600 which will be bearish for Ethereum.

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Not surprisingly, other cryptocurrencies are also moving lower today. Shiba Inu lost momentum after an unsuccessful attempt to settle above the 20 EMA at $0.00004650 and is trying to settle back below $0.000040. Dogecoin has recently managed to get below the important support level at $0.2150. Solana is testing the 50 EMA at $202.20 while XRP is trying to settle below $1.00.

Technical Analysis

Ethereum is currently testing the support level at the 20 EMA at $4,310. In case this test is successful, Ethereum will move towards the next support which is located near the $4,200 level.

A successful test of the support at $4,200 will open the way to the test of the next support at $4,100. if Ethereum manages to settle below this level, it will move towards the next support which is located at the 50 EMA near the $4,000 level.

On the upside, Ethereum needs to get above the resistance at $4,535 to have a chance to get closer to all-time high levels. If Ethereum settles above this level, it will move towards the next resistance at $4,650.

A move above $4,650 will push Ethereum towards the resistance at $4,770. In case Ethereum manages to settle above the resistance at $4,770, it will head towards the next resistance level at $4,865.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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