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Decoding Ethereum Classic’s unprecedented gains and what lies ahead

2min Read
Ethereum Classic surges past resistance level to post 30% gains within a day
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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Bitcoin [BTC] had a tumultuous start to the trading week. On 5 September, the king of crypto reached a high of $20,180 and a low of $19,630. A few hours prior to writing, BTC had surged from $19.8k to $20.1k.

In the next hour of trading, BTC undid all those gains to slump back to $19.7k. Ethereum Classic [ETC] was unperturbed by this chaos. The altcoin broke emphatically past the $34.3 resistance mark and has posted a further 17% hike with high buying volume.

ETC- 1-Hour Chart

Ethereum Classic surges past resistance level to post 30% gains within a day

Source: ETC/USDT on TradingView

A set of Fibonacci retracement levels (yellow) were plotted based on ETC’s move down from $38.38 to $30.34 in late August. The 50% and 38.2% retracement levels have served as important resistance levels in the past week.

In the past few hours of trading, ETC smashed its way above these resistances. 23.6% and 61.8% Fibonacci extension levels lie at $40.28 and $43.35. These areas can be used to take a profit.

A buying opportunity might arise on a session close above $40.28. A stop-loss below $40 and a target of $43 could be an aggressive trade to enter. Considering the strong upward momentum ETC has, such a bet could be profitable.

The $37-$38 area represents a fair value gap that ETC left behind as it rocketed skyward. A revisit to this zone could also offer a buying opportunity.

Rationale

Ethereum Classic surges past resistance level to post 30% gains within a day

Source: ETC/USDT on TradingView

The hourly Relative Strength Index (RSI) was in the overbought territory and has been for many hours now. The Stochastic RSI plummeted, while the A/D line reached higher.

The A/D showed a high influx of buying volume in recent hours. This fact was also visible on the volume bars beneath the price action.

The presence of strong demand meant that pullbacks could be shallow. Moreover, the $41.24 and $44 levels have been significant resistance levels in the month of August.

Conclusion

The demand was strong in recent hours, but the $41 and $44 marks pose severe opposition to any move further north. Therefore, a dip to the $37-$38 area can be used to buy ETC.

In the event of such a pullback, the health of BTC would also be important. Bitcoin would need to be neutral or bullish to pave the way for further ETC gains.

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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