ETH/USD Forecast: Here Is Why $72.00-70.00 Is Important
|The ETH/USD pair fell and moved down by roughly $10 before finding strong bids near $72.00.|
|Yesterday’s highlighted support area at $72.00 on the 6-hour chart acted as a perfect barrier for sellers.|
|The ETH/BTC pair was also under pressure, and moved below 0.054BTC.|
Technically, the 2-hour chart indicators recovered well after moving slightly in the bearish territory.
Ether Price Rejection near $72.00 Vs US Dollar
There was a decrease in buying pressure around Ether against the US Dollar and Bitcoin mainly due to the listing of Gnosis (GNO), taking away liquidity.
In yesterday’s analysis, we noted two support levels - $78.00 and $72.00. The first one represented the 23.6% Fibonacci retracement level of the last wave from the $72.00 low to $82.80 high. The ETH/USD pair failed to hold it, and moved down.
The downside move was such that the pair tested the last swing low at $72.00. The stated level provided a monster support, as highlighted in yesterday’s 6-hour chart and considered as a major pivot for the current trend.
It was a perfect barrier for Ether sellers and prevented any further declines. ETH/USD was completely rejected near $72.00, as the pair bounced back sharply.
The $72.00 support significance can be seen in the 2-hour chart. It is a major confluence support area formed with two important bullish trend lines and a weekly pivot.
It also represents the 23.6% Fibonacci retracement level of the last major wave from the $41.60 low to $82.80. A break below the $72.00-70.00 support area won’t be easy in the near term.
Should a break and close below $70 take place, it could open the doors for a move towards the next support which is just above $60.00.
On the upside, the $80.00-82.00 area might play a crucial role for ETH/USD in opening the doors for a move towards all-important $100.00.