Disclaimer: The results of the analysis below are the author’s sole opinion and should not be considered investment advice.
Ethereum Classic (ETC) is in a rapid withdrawal phase after reversing from the annual trendline resistance of nearly $ 52.After puncturingAt some important price points, Altcoin turned 14 months of support into resistance (white) in the market-wide sellout.
Immediate support at $ 17.5 has dampened the recent decline. Below this level, future sessions may delay revival that could be caused by alt. At the time of the press, ETC traded at $ 18.42, down 9.17% in the last 24 hours.
ETC 4 hour chart
Source: TradingView, ETC / USDT
Due to the decrease in the descending wedges (white), a whopping 35.1% decrease has been seen in the last four days. After the recent bullish hammer candlestick, sales stopped momentarily at the $ 17.5 baseline.
After easy integration with the highest liquidity range (represented by the point of control) [POC], Red), the bear quickly glide through the hurdles in the range of $ 21 to $ 24. Altcoin also showed a strong bearish shape with a significant increase in 24-hour trading volume.
As the EMA ribbons refrain from looking south, the gap between the ribbons is only widening to represent a strong selling edge. Given the recent low price denial, ETC may be sold out more often.
In doing so, the lift-off from the floor in the immediate vicinity opens the doorway to get enough thrust to break the bond of the falling wedge. However, the $ 19- $ 21 range continues to pose a hurdle due to the bearish market structure.
The rationale
Source: TradingView, ETC / USDT
The Relative Strength Index bounced off after approaching the long-term floor at 17th level. However, he still refused to recover from the oversold area. The range of 22-25 is important for the buyer to quickly collapse to maintain the rationale.
Aroon up (yellow) is having a hard time finding a sustainable rally that exceeds 22.5% for a week. Failure to reverse this level can lead to a long-term downturn on the chart.
Conclusion
By posting a recent low-priced rejection after a bullish hammer, buyers have shown some conviction to retain immediate evidence. However, failure to increase buying volumes can lead to an undesired delay in the required bullish resurgence beyond the falling wedges.
Moreover, broader market sentiment and on-chain development will play an important role in influencing future developments.
