Ethereum Classic [ETC] After rebounding from 15 months of support near $ 12, we saw an increase in increments. However, the three-month trendline resistance (yellow, dashed line) has tied the buying effort to the string.
ETC has jumped over the EMA ribbon by posting a recent bullish resurgence. Meanwhile, the seller chalked a bearish pattern in a four-hour time frame.
A reversal from the 23.6% Fibonacci resistance could pull the ETC towards the $ 14 zone before a very volatile break from the current pattern. At the time of the press, alt traded at $ 15.26.
ETC 4 hour chart
Source: TradingView, ETC / USDT
The ETC plunge from the April highs recorded lower peaks and valleys in a longer time frame, so put alt on an extended bearish truck. In this phase, ETC saw a three-month trendline resistance. This trend line has served as an important area during the decline.
With a 76.28% retracement (starting March 29), alt hit a 15-month low on June 19. The final buy comeback helped the Bulls find just above the EMA ribbon.
Volatility has been low for the past few days, but prices have remained in a bearish flag-like pattern near the 23.6% level. In addition, the 3-month trendline resistance matched the 23.6% level, creating a barrier confluence.
If the current candlestick falls below the 23.6% level, ETC is more likely to have a patterned vibration. When you post this, the seller aims to give you a breakdown. If the number of buyers is reduced, moving closer to the bottom of the pattern exposes alt to a potential 7% downside. The short target is in the $ 13 zone.
However, broader improvements in sentiment may negate the bearish tendency. Immediately above the resistance of the trend line, retracement may be delayed, reversing from the $ 15 zone.
The rationale
Source: TradingView, ETC / USDT
The Relative Strength Index (RSI) has grown steadily above the median. If the median support is solid, the Bulls can have a window to step in and continue their revival gradually on the chart.
The Accumulation / Distribution (A / D) line also marked a lower valley, confirming a mild bullish divergence with the price.However, alt revealed a trend in a substantially weaker direction. [ADX] The past few days.
Conclusion
If ETC finds a retrace opportunity with its direct trendline resistance, it can fall below the EMA ribbon. In this case, the take profit level remains the same as above.
However, if 20EMA exceeds 50EMA, the buyer aims to nullify the short-term bearish trend. Next, traders / investors need to look for possible reversals in the range of $ 15.8 to $ 16.
Finally, broader market sentiment and chain development play a key role in influencing future developments.
