Ethereum price prints its second-best trading day for November as Powell delivers

Ethereum (ETH) price rallied firmly late in the US session on Wednesday as Fed Chair Powell held an ad hoc speech in New York. Powell channeled toward the markets that December might already see a 50-basis-point hike instead of 75 basis points, which triggered a massive jump in equities and cryptocurrencies. Seeing this quite pivotal shift of the Fed still hiking but with smaller increments, markets think the policy could open up some upward movements in EUR/USD. A weaker US Dollar across the board would then provide some tailwinds for cryptocurrencies.

ETH fades too soon, the tank is not empty yet

Ethereum price has been appreciating over 10% since Tuesday on the back of a weaker US Dollar, which in turn popped higher on the back of markets gearing up for a less hawkish Fed. This time there was no buy-the-rumor-sell-the-fact price action but a perfect buying of the rumor and staying in the trade. Although a fade is underway in ETH, more gains are at hand as this is not just a one-day effect, but the rally has more room to go. 

ETH has been seen shooting above the low of February 1, 2021, and halted at November's monthly S1 support level. With December 1 underway, the monthly pivots have been recalibrated. The new monthly pivot is positioned a bit higher up, near $1,350, and is nearly falling in line with the 55-day Simple Moving Average (SMA). Expect to see another leg higher once that monthly pivot is broken and see ETH rally toward $1,500 with the 200-day SMA as the cap on the topside.

ETH/USD daily chart

The risk from the fade could be that it quickly drops lower in search of support. That first support should be around $1,243 at the low of February 1, 2021. In case that does not hold, the risk is that price action falls below the red descending trend line near $1,150, which would mean that the two-day gains are lost yet again.