Ethereum Classic is trading within a range, but here is where the opportunity is
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
The festive season has arrived and retail investors are still debating whether smart money is actively trading or taking the time off, retiring briefly from their trading desks. Regardless, crypto continues to trade 24/7, and price action and volume continue to be an analyst’s only concerns.
Ethereum Classic has ranged between the $33.4-area and $36.6-area over the past ten days. A breakout in either direction did not seem imminent, at press time. The trading volume for Ethereum Classic has been low, suggestive of a market whose participants are mostly sidelined.
Ethereum Classic – 1-hour chart
On the 16th of December, ETC hit $33.38, a zone that represented the 61.8% Fib retracement level. Buyers stepped in with force, forcing the price back to the range highs of $36.64.
However, since then, the price has oscillated between the two levels, and each sweep of the $33-lows has seen lesser and lesser buying strength (Note the trading volume on subsequent wicks to the $33.5 area).
This price action held three key areas for a trader to watch out for. These are the range highs at $36.5, the Point of Control (PoC) at $35.1, and range lows around $33.4.
The Visible Range Volume Profile on the price chart showed where the PoC lay. It also highlighted the $35-$35.4 area to be a strong area, with relatively high liquidity over the past couple of weeks.
The OBV has made higher lows in recent days, but the past two or three days have seen the OBV move very little. The Awesome Oscillator also showed that momentum was barely bullish.
Taken together, it seems likely that the price would chop sideways and downward to the $35 pocket over the next couple of days. If the bears manage to drive prices beneath $35, another sweep of the $33.4 lows would be likely. The bulls’ reaction has to be stronger than it has been recently, or ETC could sink lower in search of buyers.
Under $33, the $27.5-$30 area could beckon. However, if ETC buyers step in with strength at just below the current range lows, a buying opportunity would present itself, targeting $35 and $36.5 as take-profit levels.