October was a dull month for Ethereum and other cryptocurrencies. However, this has changed in November. What are the 3 reasons behind its rally?
November 8, OctaFX – The price of Ethereum remained little changed as the Average True Range (ATR) indicator remained at low levels. The ATR is an indicator used to show the volatility of securities.
In November, this has changed. The price of the ETHUSD has rallied from 185 to a monthly high of 220, which is a 18% gain.
3 Reasons Behind Ethereum November's Rally
There are a number of reasons for this month’s gains. Firstly, there are signs that the SEC could accept a BTC ETF before the year ends. If this happens, it could result in a short-term crypto rally.
Secondly, there has been no major news of an exchange hack in recent weeks. In the past, reported hacks have led to increased volatility in the price of Ethereum and other cryptocurrencies.
Thirdly, there is a technical factor whereby the consolidation in October led many to believe that a breakout would happen.
Eric Schmidt: Ethereum Has a Lot of Potential
Yesterday, in a conference in San Francisco, former Google Chairman, Eric Schmidt, said that Ethereum had a lot of potential. This is because it is built to solve a problem in the smart contract industry.
This was affirmation for a cryptocurrency that has been under pressure in the past few months. The pressure started when Tech Crunch published an article criticizing the value of ETH.
This week, mining giant Bitfury announced that it had closed a private placement of more than $80 million. The deal was led by a number of investors such as Michael Novogratz, Macquarie Capital, and Dentsu among others.
This was one of the biggest private deals in the cryptocurrencies industry. It comes after two of the biggest Bitcoin miners – Genesis and Bitmain – launched their IPOs.
Will ETHUSD Continue the Downward Trend
The ETHUSD pair is trading at 210, which is 10 points lower than this month’s high of 220. The double EMA of 30 and 15 days made a crossover today which is a sign that the pair could continue moving lower.
The ATR has moved from a high of 3.38 to the current low of 2. This is a sign that the previous volatility has eased. There is a likelihood that the pair will move lower to probably the 200 level.
This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.