Ether Price Reacts To Presidential Election Results
|Ether price dropped against the US Dollar and Bitcoin once the US presidential election results were out.|
|The ETH/USD pair broke an important short-term range support at $10.80 for a downside move.|
Technically, the indicators on the 2-hours suggest a crucial break, which may ignite further losses.
ETH/USD to Decline Further?
The recent trading sessions were volatile as the US presidential election results were out – Donald Trump won. This came as a surprise to many traders, causing market uncertainty and impacting Ether negatively. The price dropped suddenly against the US Dollar and Bitcoin.
ETH/USD broke the $10.80 support area and ETH/BTC moved below 0.0150BTC. Let us look at the 30-min chart of ETH/USD. There was a clear break below the all-important $10.80 support area for a move towards $10.25.
The stated support area break was crucial, as it has cleared the way for more declines in the short term. The price is recovering at the moment, but may resistance offers on the upside. The same broken support at $10.80 might now act as a resistance.
It also coincides with the 50% Fibonacci retracement level of the last decline from the $11.28 high to $10.25 low. So, any major correction from the current levels could face hurdle near $10.80. On the optimistic side, we say that the recent break may be a false move, considering there was high-impact news influencing the price.
The 2-hours chart of ETH/USD suggests the same story. The highlighted range pattern was broken, resulting in a downside move. The next monster support on the downside is at $10.00, which holds the key in the long term.