Ethereum Classic: Gauging ETC’s potential to reclaim a spot above $15
Ethereum Traditional [ETC] noticed incremental good points after rebounding from its 15-month assist close to the $12-mark. However the three-month trendline resistance (yellow, dashed) has stored the shopping for efforts below a leash.
ETC’s jumped above its EMA ribbons put up the latest bullish resurgence. In the meantime, the sellers chalked out a bearish sample within the four-hour timeframe.
A reversal from the 23.6% Fibonacci resistance may pull ETC towards the $14-zone earlier than a extremely unstable break from its present sample. At press time, the alt traded at $15.26.
ETC 4-hour Chart
Supply: TradingView, ETC/USDT
ETC’s plunge from its April highs put the alt on an prolonged bearish observe because it registered decrease peaks and troughs on an extended timeframe. Throughout this section, ETC noticed a three-month trendline resistance. This trendline has served as an essential space throughout the decline section.
The 76.28% retracement (from 29 March) led the alt to poke its 15-month low on 19 June. The eventual shopping for comeback helped the bulls discover a shut above the EMA ribbons.
The previous few days marked a low volatility section whereas the worth hovered in a bearish flag-like sample close to the 23.6% degree. Additionally, the three-month trendline resistance coincided with the 23.6% degree to create a confluence of boundaries.
Ought to the present candlestick shut beneath the 23.6% degree, ETC would see a possible patterned oscillation. Publish this, the sellers would purpose to inflict a breakdown. If the patrons dwindle, any shut beneath the sample would expose the alt to a possible 7% draw back. The shorting targets would lie within the $13-zone.
However any broader enhancements within the sentiment may invalidate the bearish tendencies. A detailed above the trendline resistance can delay the retracement and see a possible reversal from the $15-zone.
Rationale
Supply: TradingView, ETC/USDT
The Relative Power Index (RSI) noticed regular progress from above the midline. Ought to the midline assist stand sturdy, the bulls may have a window to step in and proceed a gradual revival on the chart.
Additionally, the Accumulation/Distribution (A/D) line marked decrease troughs whereas affirming a light bullish divergence with value. Nonetheless, the alt revealed a considerably weak directional development [ADX] over the previous couple of days.
Conclusion
Ought to ETC discover a retracing alternative at its instant trendline resistance, it may fall beneath its EMA ribbons. On this case, the take-profit ranges would stay the identical as above.
Nonetheless, if the 20 EMA cross above the 50 EMA, the patrons would purpose to invalidate the near-term bearish tendencies. Then, the merchants/traders ought to search for a attainable reversal from the $15.8-$16 vary.
Lastly, the broader market sentiment and the on-chain developments would play an important function in influencing future actions.
