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Ethereum went into the red on November 16 as markets grew jittery following an accidental missile explosion in Poland. Fears grew of a potential escalation in the war between Russia and Ukraine, as the missile struck Poland, which is a NATO-backed country. Both Poland and NATO have downplayed the significance of the strike and have so far not accused Russia of the act. Bitcoin also fell, ending two days of gains.

Bitcoin

bitcoin (BTC) was back in the red on Wednesday as markets reacted cautiously to news today that saw a war missile land in Poland.

After two consecutive days of winning, BTC/USD fell on the day of the bump, hitting an intraday low of $16,617.91 in the process.

This comes less than a day after prices for the world’s largest cryptocurrency hit a high of $17,051.96.

Bitcoin, Ethereum technical analysis: ETH lower, as markets react to missile explosion in Poland
BTC/USD – Daily Chart

Looking at the graph, the drop in BTC comes as the 14-day Relative Strength Index (RSI) did not break above a high of 39.00.

As of this writing, the index now sits at 36.30 and appears to be heading towards a visible low of 33.30.

If the bears manage to send the price to this point, it is likely that BTC/USD will fall below $16,000.

Ethereum

Ethereum (ETH) also reacted to today’s headlines, as the token approached the $1,200 level.

ETH/USD was trading up to 4% lower, falling to a low of $1,218.84 during today’s session, a day after hitting a high of $1,283.20.

The move saw the token pull back slightly from a recent support level of $1,220, which is usually the last line of defense before prices fall below $1,200.

Bitcoin, Ethereum technical analysis: ETH lower, as markets react to missile explosion in Poland
ETH/USD – Daily Chart

As we saw with bitcoin, Ethereum also encountered a ceiling on its 14-day RSI, failing to break above the 43.00 hurdle.

Currently, the index is at a reading of 39.85, and should it drop below a next low of 38.00, ETH will extend today’s decline.

The 10-day moving average (red) still seems to have further downward momentum, which could also be a sign of sentiment ahead.

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Do you expect Ethereum bulls to reject a break below $1,200? Leave your thoughts in the comments below.

Eliman Dambell

Eliman brings an eclectic perspective to market analysis, having previously served as a brokerage director and retail educator. Currently, he acts as a commentator on various asset classes including Crypto, Stocks, and FX.




Image credits: Shutterstock, Pixabay, Wiki Commons

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