ETH/USD: Here Why $10.00 Support Is So Important
|Ether price continued is declining streak against the US Dollar, and traded below $10.00.|
|The $10.00 level holds a lot of importance for the ETH/USD pair, as it acted as a monster support on many occasions.|
|As long as the pair remains above it, there is a chance of a recovery in the short term.|
Technically, the daily chart is suggesting that Ether price is trading near a crucial juncture.
Can Ether Price Recover?
Yesterday, Ether price declined further and posted nasty declines not only against the US dollar, but also versus the Bitcoin. The ETH/USD pair negative sentiment was boosted that took the pair below the $10.00 level. Moreover, the ETH/BTC pair posted a new three month low below 0.0140BTC.
When we look at the 2-hours chart of ETH/USD, there was a clear rejection around the $10.00 level. The price sharply recovered after dipping below the stated level, and currently trading above it. The last 3-4 candles on the same chart looks positive, and signaling an initial sign of a possible recovery.
The price also traded above the 23.6% Fibonacci retracement level of the last decline from the $11.52 high to $9.67 low. This can be considered as the second sign. However, it would be very early to call the recent rejection near $10.00 as the start of a recovery.
There is a bearish trend line formed on the same chart, which is a major resistance area on the upside. If there is a break above it, the chances of a reversal may increase in the near term.
In order to understand the importance of the $10.00 support, let us look at the daily chart of ETH/USD. We can clearly see that the stated level acted as a monster support area where buyers protected downsides many times.
So, there is a high possibility the price may recover from the $10.00 support zone, and traders need to keep a close eye on it. Remember, a daily close below $10.00 would be a very strong bearish signal, which could result in a monstrous decline.