Disclaimer: The results of the analysis below are the author’s sole opinion and should not be considered investment advice.
Like many altcoins in the crypto area, Ethereum Classic [ETC] The chart also has a long-term downward trend. Prices in February and March actually rose to a high of $ 52, breaking the long-term bear market structure. However, at the beginning of April, altcoin was at the bottom of the chart.This was backed by Bitcoin [BTC]The same goes for the drop from the $ 47k resistance level.
ETC-12 hour chart
On May 12, ETC fell from $ 20 to $ 16 and bounced back to $ 21 on May 13. This highlights the entire area between $ 16 and $ 18 as a strong demand zone. From this zone, ETC was able to see a big bounce.
By the end of May, prices were able to rise to a resistance level of $ 25.3. However, this rally did not indicate a reversal of the trend. Rather, it helped add fuel to the bearish fire. A week after June, a support level of $ 21.6 was tested and quickly gave way.
Prices have hit a series of lows in the last few weeks, with another high in the $ 17.7 area. Therefore, we confirmed that the $ 16 to $ 18 area was the resistance zone and showed a further decline. The 21-period SMA (orange) formed a bearish crossover under the 55-period SMA (green) a few weeks ago, further accentuating the bearish momentum.
The Relative Strength Index (RSI) on the 12-hour chart is struggling to exceed Neutral 50. For the past two months, every advance beyond this level has been an enthusiastic adventure. The RSI tended to move far south. This suggests that bearish trends have been dominant in recent months.
The on-balance volume (OBV) also found it difficult to rise and slowly fell to create a series of lows like the price. This shows that sales are high and there is no strong demand to reverse the downtrend.
Chaikin Money Flow (CMF) has recently surpassed the +0.05 mark to indicate a large inflow of capital into the market. However, it is still facing south as of June 29th.
Considering the Ethereum Classic scenario on the price chart, it could fall further. Sales pressure increased again and momentum remained bearish in higher timeframes. $ 13.6 and $ 10.4 may be tested as support levels over the next few weeks.