Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
Ethereum Classic’s [ETC] price has been following the trends of the Ethereum [ETH] market. This resulted in the value of ETC surging by 24% within four hours, at press time. What’s more, this surge pushed the value of the digital asset from $88.36 to $110.19.
With Ethereum Classic holding steady around the $110-zone, it would seem that the altcoin was in extremely bullish territory.
Ethereum Classic hourly chart
Source: ETCUSD on TradingView
Ethereum Classic’s price had been pushed under the support level at $89.83, however, the latest surge helped the price recover from this plunge. This sudden shift in price trend also contributed to more volatility in the market.
Such steady support from the market has made it difficult to predict the short-term movement of ETC.
Reasoning
Ethereum Classic’s attached hourly chart pictured the long downtrend noted by the digital asset. However, at the end of this long descent, ETC’s price surged and catalyzed the low volatility. As the Bollinger Bands diverged and confirmed the rise in price action, the market was filled with buyers.
The Relative Strength Index underlined the rising buying pressure as the indicator shot up from the oversold zone. The RSI suggested that the asset had remained in the oversold zone under 30 for a while, with the buyers taking the opportunity to long the coin. As the price started climbing, the market became saturated with buyers.
Meanwhile, the Awesome Oscillator highlighted bullish momentum, with its histogram suggesting that this trend might be here to stay.
Conclusion
Ethereum Classic’s market noted a trend reversal as the alt’s price turned on its head. This change in momentum resulted in the market getting saturated with buyers. With the price moving towards the resistance level at $110.19, long traders might soon be making a profit.
