Cryptocurrencies made a surprise move north on Wednesday amid rising tension ahead of the United States presidential elections’ final results. Ethereum and Bitcoin have resumed their uptrends at the time of writing. Ether is on the verge of rallying to $420, while Bitcoin could jump to $15,000.
Joe Biden is leading in the elections with 238 electoral votes. The President, Donald Trump, comes second with 213 electoral votes. The final results are expected before the end of the day, but they could day for several hours, days, or even weeks. The tension is creating mayhem in the stock market, which may continue pulling cryptocurrencies like Ethereum and Bitcoin upwards.
Ethereum recently retested the hurdle at $400 but a rejection that ensued sent the smart contract token back to the drawing at $370. The 200 Simple Moving Average played a key role by bringing stability to the market. Moreover, buyers had ample time to shift their focus back to $400.
ETH/USD 4-hour chart
The breakout above a descending parallel channel seems to have added credence to the bullish outlook. Simultaneously, Ether is has pushed past several resistance zones such as the 50 SMA and 100 SMA. Price action beyond $400 is likely to pave the way for massive gains, eyeing $420. For now, the path the least hurdles is upwards, as highlighted by the Relative Strength Index (RSI).
On the flip side, a correction below $400 is likely to revisit the 100 SMA support in the 4-hour range. The 50 SMA is also in line to offer the much-needed support in case of declines progressing further. Ethereum’s critical support at the 200 SMA is still intact and will help avert dire losses to $360.
Ethereum Intraday Levels
Spot rate: $405
Relative change: 15
Percentage change: 4%
Trend: Bullish
Volatility: High
