Several days ago, on the 19th, I wrote about the importance of the 0.0205 area and why the market may sell-off down to 0.019, if price slipped underneath 0.0205 at some point. Well, later that day, price made its way under 0.0205 and the market proceeded to sell-off down to 0.019.
While the 0.019 price level provided support on two occasion this week, this level has acted as support a total of five times since the middle of April. Now that price is trading well under this pivot area, any rallies in the near future will encounter problems at this zone, as it will most likely start to act as resistance. Mark this level on your charts!
The market is also currently sitting on another pivot that I think needs mentioning: 0.018. This area acted once as support during the big plunge on the 10th, and this level turned into resistance on the 12th, so the 0.018 area does have a bit of history.
The big pivot everyone should be watching is 0.017. The daily chart shows that this area goes all the way back to February. If this level fails to halt the current bear market and instead turns into resistance – ETH may slide all the way down to 0.0115, which happens to be the next major pivot zone.
Disclaimer: This is not trading/investment advice!
Chart Source: https://poloniex.com/exchange#btc_eth
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