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Friday, September 24, 2021

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Ethereum Classic: an extended rally depends on these conditions




Ethereum Classic was in recovery mode after the breakout of a symmetrical triangle caused a 12% decline. A rebound in trading volumes and buying pressure allowed ETC to rise above its short and medium-term moving averages again. The emphasis now is on certain swinging highs that were broken during the ETC symmetrical triangle formation.

Now, the ultimate short-term goal is at the 3-month high of $ 77.37, from where more pronounced gains can be made. At the time of writing, ETC was trading at $ 65.8, an increase of 9% in the last 24 hours.

ETC 4-hour chart

Source: ETC / USD, TradingView

The 200-SMA (green), which can often trigger a price reversal, came into action when ETC rallied from a two-week low of $ 58.7. A resistance zone made up of some swinging highs would be ETC’s immediate challenge. These swing highs exist within the range of $ 67- $ 71.




A decisive close above these levels, with solid volumes, would pave the way for an extended rally, from where it will target $ 77.4 below. Overall, this would lead to another 16% increase for ETC from the existing level. Should the aforementioned resistance deny further upside, ETC will need to trade above $ 62- $ 63.4 to maintain bullish control, while a close below $ 58.7 will invite additional short sellers.

Reasoning

The Relative Strength Index witnessed a strong rebound from the oversold zone and traded above 60 again. This increased the chances of an extension to the upper zone before a reversal. Meanwhile, bullish crossovers were seen on the MACD and the directional movement index.

These signals stimulate additional buying in the market. Here, it is also important to mention the fact that ETC traded above the daily 20-SMA (not shown), which is expected to play in the favor of buyers.

conclusion

ETC seemed willing to challenge the $ 67- $ 71 resistance in the coming sessions. A close above this zone could push prices up to the $ 77.4 mark. In addition, it is also important to be attentive to trading volumes. However, traders should watch how ETC interacts with the incoming resistance area before entering a position.

This is a machine translation of our English version.

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TAMMY SEWELL
Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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