Ethereum moved into the red on Nov. 16, as markets became nervous, following a missile accidentally exploding in Poland. Fears grew of potential escalation in the war between Russia and Ukraine, as the missile hit Poland, which is a NATO-backed country. Poland and NATO have both downplayed the strike, and have so far not accused Russia of the act. Bitcoin also fell, ending two days of gains.
Bitcoin (BTC) was back in the red on Wednesday, as markets reacted cautiously to today’s news, which saw a war missile land in Poland.
Following two consecutive days of gains, BTC/USD fell lower on hump-day, hitting an intraday low of $16,617.91 in the process.
This comes less than a day after prices of the world’s largest cryptocurrency rose to a high of $17,051.96.
Looking at the chart, the drop in BTC comes as the 14-day relative strength index (RSI) failed to move above a ceiling of 39.00.
As of writing, the index is now tracking at 36.30, and seems to be heading towards a visible floor of 33.30.
Should bears manage to send price to this point, it is likely that BTC/USD will drop below $16,000.
Ethereum (ETH) also reacted to today’s news headlines, as the token moved closer to the $1,200 level.
ETH/USD was trading by as much as 4% lower, dropping to a bottom of $1,218.84 in today’s session, a day after trading at a high of $1,283.20.
The move saw the token marginally break out of a recent support level of $1,220, which is typically the last line of defense prior to prices falling below $1,200.
As we have seen with bitcoin, ethereum also encountered a ceiling on its 14-day RSI, failing to move beyond the hurdle of 43.00.
Currently, the index is at a reading of 39.85, and should it decline below an upcoming floor of 38.00, ETH will extend today’s drop.
The moving average of 10 days (red) still seems to have further downward momentum to come, which may also be a signal of upcoming sentiment.
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Do you expect ethereum bulls to reject a breakout below $1,200? Leave your thoughts in the comments below.
Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.
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