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Analysis

Ethereum Classic: Is it time for ETC traders to cash in on current rally

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Source: Unsplash

Ethereum Classic [ETC] witnessed exponential gains after bouncing from its long-term support near the $13-mark. The buying efforts saw a substantial uptick after the alt finally jumped above the $16-zone last week.

ETC’s jumped above its 20/50/200 EMA in the ongoing bullish resurgence. Meanwhile, the altcoin saw an up-channel breakdown that marked a short-term setback on the chart.

A rebound from the 38.2% Fibonacci support could help the buyers retain the gained momentum in the coming sessions. At press time, the alt traded at $23.53, down by 4.07% in the last 24 hours.

ETC 4-hour Chart

Source: TradingView, ETC/USDT

The 89.68% retracement (from 16 July) led the alt to rise toward its two-month high on 19 July. This buying comeback helped the bulls find a close above the near as well as long-term EMAs.

Over the last few days, ETC broke into high volatility while the price recovered in an ascending channel. But with the $25 resistance keeping a check on the recent rally, the bulls still needed to infuse higher buying volumes.

The rebound from the 38.2% level can aid the buyers in testing the Point of Control (POC, red). Post this, the alt could see a low volatility phase. If the sellers lose their vigor, ETC will aim to retest the $25.6 zone before any trend-altering move.

Any deterioration in the sentiment could slight bullish tendencies. The buyers had to ensure a position above the 20 EMA to prevent this. 

Rationale

Source: TradingView, ETC/USDT

The Relative Strength Index (RSI) consistently maintained its spot above the midline and depicted a slight bullish edge. Should the bulls continue to ensure the midline support, the alt could continue seeing near-term gains.

However, the CMF revealed a somewhat bearish picture while it plunged below the zero-mark and affirmed a decrease in the money flows.

Conclusion

If ETC continues its rebound from the 38.2% support, it could see some gains before flattening near the POC. In this case, the take-profit levels would remain the same as above. Then, the alt would likely enter into low volatility before an explosive break.

Finally, the broader market sentiment and the on-chain developments would play a vital role in influencing future movements.

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With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

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