September 25, 2022


Disclaimer: The results of the following analysis are the author’s opinions only and should not be considered investment advice

Over the past few weeks, Ethereum Classic’s . has been released [ETC] Gradual growth stabilized in the $38-$39 range. This range has inverted itself to show supply-zone trends, especially after the recent rejection of price hikes.

A significant spike in buying volumes could help reverse the trend in favor of the bulls. A close above this supply zone could confirm the bullish bias.

Additionally, the three-week trendline support (white, dashed) could take a vital position in influencing altcoin’s future moves. At press time, the alternative is trading at $38.16, up 5.64% in the past 24 hours.

4 hour chart ETC

Source: TradingView, ETC / USDT

ETC posted an atypical ROI of more than 240% as bulls snatched a stunning rally from July 13 towards a four-month high on July 29. This buy back helped the bulls find a well-needed close above the exponential moving average bands.

Over the past few days, ETC has entered a pressure phase near the Point of Control (POC, red) in the $36 region. Meanwhile, the three-week trendline support, the POC, and the 20 EMA, coincided to provide the basis for a recovery for ETC.

However, with instant viewing area [$38-$39] With the recent rally still validated, the bulls still need to increase buying volumes.

A bounce from the 20 EMA could help buyers retest the immediate resistance before a possible bullish breakout occurs. In this case, the potential target would be in the $40-$41 range.

If broader sentiment deteriorates bullish strength, a close below trendline support may delay prospects for recovery in the near term. Buyers will aim to continue the spree from the baseline of $33.

Logic

Source: TradingView, ETC / USDT

The Relative Strength Index (RSI) held above its mid-line and expected a slight bullish edge. However, it has not yet jumped above 61 to show a strong bullish dominance.

On the other hand, the accumulation/distribution gauge and CMF were unable to confirm the higher tops of the price action. Hence, a bearish divergence has formed on this time frame.

Also, the directional trend of the altcoin has affected and reversed somewhat shaky strength.

conclusion

Given the confluence of trendline support along with the EMA and POC bands, the ETC bulls will strive to break through high volatility in the upcoming sessions. With that said, bearish divergence on the indices could trigger a slowdown ahead of a possible recovery. Either way, tIts objectives will remain as discussed.

Last but not least, broader market sentiment and developments on the chain will play a vital role in influencing future movements.



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