Connect with us

Analysis

Ethereum Classic’s [ETC] near-term uptrend can extend if…

Published

on

Source: Canva


Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

After a relatively dull week, sellers toned down the buying efforts by pulling Ethereum Classic [ETC] toward the $31 baseline. But the buying re-emergence pushed the altcoin above the four-hour 20/50/200 EMA to reveal a slight bullish edge.

The altcoin’s reversal from the $37.4-level has curtailed the recent streak of green candles. The alt could enter a potential squeeze before breaking into high volatility. At press time, the altcoin was trading at $36.31, down by nearly 2.49% in the last 24 hours.

ETC 4-hour Chart

Source: TradingView, ETC/USDT

ETC lost nearly a third of its value after taking a U-turn from the $44-ceiling in mid-August. As a result, it hit its monthly low on 22 August.

Over the last few days, ETC broke into high volatility after jumping from the $31-zone. This buying comeback helped the bears find a close below the 20/50/200 EMA in this timeframe. Meanwhile, the gap between the 20 EMA (red) and the 50 EMA (cyan) decreased to reflect the increasing buying edge.

The altcoin could find immediate support near these EMAs in the coming sessions. In this case, the potential targets would lie in the $37-$39 range. A bullish crossover of the 20/50 EMA would further heighten the chances of an extended bull run.

Should the broader sentiment reignite the bearish vigor, the altcoin would likely see a retest of the $34 region before a revival. If the sellers insist on defending the $37-level, ETC could witness a compression phase.

Rationale

Source: TradingView, ETC/USDT

The Relative Strength Index (RSI) maintained a slight buying edge while hovering above the equilibrium. A sustained growth beyond the 50-mark would reinforce the near-term revival prospects.

On the other hand, the Chaikin Money Flow (CMF) lower troughs bullishly diverged with the price action. Also, the MACD lines swayed above the zero mark to reveal a strong bullish edge. Any bearish crossover on these lines could hint at a near-term slowdown.

Conclusion

Given the potential of the 20/50 EMA to offer immediate support alongside the robust readings on the indicators, ETC bulls would aim to continue the ongoing uptrend. But an inability to inflict a bullish crossover on the 20/50 EMA can delay the recovery prospects. The targets would remain the same as discussed.

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

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.


Please select your Email Preferences.

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.

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.