Ethereum Classic: How to measure ETC’s ability to continue rising

Disclaimer: The results of the analysis below are the author’s sole opinion and should not be considered investment advice

Over the past few weeks, Ethereum Classic [ETC] Gradual growth stabilized in the $38-39 range. This range has flipped, showing a supply zone trend, especially after the recent rejection of higher prices.

A large increase in buying volume helps to reverse the trend in favor of the bulls. A close above this supply zone could further confirm the bullish bias.

Additionally, the three-week trendline support (white, dotted line) may play a major role in influencing the altcoin’s future moves. At press time, alt is trading at $38.16, up 5.64% over the past 24 hours.

ETC 4-hour chart

Source: TradingView, ETC/USDT

ETC marked an atypical ROI of more than 240% as bulls closed toward a four-month high of July 29 alt in a stunning July 13 rally. This buying recovery helped the bulls find a much-needed close above the EMA ribbon.

Over the past few days, ETC has entered a compression phase near the point of control (POC, red) in the $36 area. Meanwhile, the three-week trendline support, POC and 20 EMA coincided to provide the basis for a rebound for ETC.

However, with the immediate supply area [$38-$39] Keeping the recent rally in check, the bulls still need to add more buying.

A bounce off the 20 EMA could help buyers retest immediate resistance before a potential bullish swing breakout. In this case, the potential target would be between $40 and $41.

A close below trendline support could delay prospects for a near-term recovery if broader sentiment sours bullish dynamism. Buyers are aiming to continue their spree from the $33 baseline.


Source: TradingView, ETC/USDT

The Relative Strength Index (RSI) remains above its midline and is expected to be slightly bullish. However, it has yet to break above the 61 mark to show strong bull dominance.

On the other hand, the Accumulation/Distribution indicator and CMF cannot confirm higher peaks in price action. Hence, a bearish divergence is formed on this time frame.

Furthermore, the directional trend of the altcoins took their toll and reflected rather fragile strength.

in conclusion

Looking at the confluence of trendline support with EMA ribbons and POC, ETC bulls will struggle to break out of high volatility in the coming sessions. However, a bearish divergence in the indicator could spark a downturn ahead of a possible recovery.In either case, tHis goals will remain the same as discussed.

Last but not least, broader market sentiment and on-chain developments will play a crucial role in shaping future moves.

Source link

Leave a Reply

Your email address will not be published.