Today, the ETH exchange is hovering above 0.023 for the first time since the beginning of April. In the past two months, the 0.023 pivot zone prevented the market from breaking out on multiple occasions; three times to be more exact. Given the history of this very important technical level, I would say there is a very good chance that 0.023 may now start acting as support – which may set the stage for another rally over the next few days.
If for some reason the market breaks under 0.023 again – 0.022 will likely be tested once again. Since the beginning of May, the 0.022 area acted as resistance about three times. Yesterday, the 0.022 pivot turned into support, when the market retraced to this level.
Now, let’s discuss the major pivot zone at 0.024, which goes all the way back to March. I have also written about this area in one of my previous Ethereum articles, and it seems that this level is now acting as resistance. As soon as price touched 0.024 today, there was a very abrupt reversal. It is clear that market participants are aware of the significance of this area! While the market has been trending nicely for the past few days, price is now trading between two major long-term pivot zones; 0.023 on the lower end; 0.024 on the upper end. A break of either of these levels will determine which way the market heads from here.
Disclaimer: This is not trading/investment advice!
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Chart Source: https://poloniex.com/exchange#btc_eth
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