Ethereum Classic was gradually getting back to its feet after a torrid sell-off on 27 October erased 13% of its value and caused a single candlewick drop to 3-month low. Underpinned by a recuperating MACD and RSI, Ethereum Classic did regain footing above $50.
However, it needed to overturn its 38.2% Fibonacci level to transition to a bullish-bias. At the time of writing, ETC traded at $54.6, up by 2% over the last 24 hours.
Ethereum Classic 4-hour Chart
Source: ETC/USD, TradingView
According to the Visible Range Profile, 60% of trades placed in the ETC market since 15 September were between the 23.6% and 38.2% Fibonacci levels. As buyers and sellers parlayed to take control, ETC kept within a neutral bias throughout October.
It oscillated within a rigid price barrier around $57 and a reliable support at $50. Although this defense was breached on 27 October following Bitcoin’s retracement to $58,000, ETC managed to regain lost ground over the next few days.
Now trading back within its value zone, ETC could stretch gains and tag the 38.2% Fibonacci level once again. Lower highs on the MACD and RSI were an encouraging sign after each indicator replenished from monthly lows. A favorable crossover between the 20-SMA (red) and 50-SMA (yellow) would lend a helping hand.
However, note that the RSI and MACD were trading close to their respective half-lines and were not in overly bullish positions. Without strong buy volumes to aid ETC’s ascent, the price would face difficulties in closing above $56.7. Moreover, an ADX reading of 18 indicated a weak directional market despite ETC’s recent recovery.
ConclusionÂ
Although ETC showed promise above $50, lack of strong directional cues could keep it restricted within its 23.6% and 38.2% Fibonacci level. Scalping would be the only viable strategy since ETC was expected to remain within a fixed channel.
