- Fibonacci levels and the OBV supported the idea of a bullish ETC
Liquidity pocket below a key support level could attract prices to it
As a seasoned crypto investor with a keen interest in Ethereum Classic [ETC], I’ve witnessed its recent surge past the $29-resistance level and the subsequent volatility around that price point. The approval of spot Ethereum ETFs, the network’s fourth halving, and the overall positive sentiment surrounding Ethereum have all contributed to this bullish trend for ETC.
On May 20th, Ethereum Classic (ETC) experienced a robust surge past the $29 resistance mark. The ensuing excitement surrounding the approval of Ethereum (ETH) spot exchange-traded funds (ETFs) also positively impacted Ethereum Classic. Furthermore, Ethereum Classic underwent its fourth halving on May 31st.
Over the past ten days, ETC experienced some volatility around the $32 mark. However, within this timeframe, its value decreased by 8% in only five days. So, the question arises: Was this price decline the beginning of a larger trend, or was it a normal correction prior to further gains?
Re-test of a vital ETC support level
Starting from the 13th of April, I’ve noticed the $29.1 mark as a formidable resistance point for the bulls in my analysis. Despite their persistent efforts, they failed to outmaneuver the bears until the 20th of May. By then, the On-Balance Volume (OBV) had been steadily rising for over a month. Evidently, it was time for a shift.
The surge in power for Ethereum Classic was additionally fueled by the buzz surrounding Ethereum, which inevitably benefits ETC as well. However, the momentum has since decelerated, as evidenced by the RSI falling to 49.
Ethereum Classic has recently revisited the previous resistance of $29 and may now find buying interest, potentially leading to a favorable response. Yet, there’s a possibility for increased volatility in the short term, specifically on Monday.
As a crypto investor, I’ve noticed that after an impressive rally around early 2024, the price experienced a pullback in March and April. Surprisingly, this downtrend didn’t quite reach the significant Fibonacci level of 78.6% at approximately $22.5. Currently, the 50% Fibonacci retracement level lies at around $29, acting as a potential support point. This observation implies that there might be an upcoming surge towards the previous high of $39.7 in the near future.
Liquidity pocket below $29 as a magnetic zone
It’s more likely that the price at $29 will rebound, but this could occur following a drop to test the significant resistance level at $28.4. A one-month analysis of market data shows that this specific range, between $28.4 and $29, contains numerous short liquidations.
Is your portfolio green? Check the Ethereum Classic Profit Calculator
Transitioning into this area would enable traders to gather the existing liquidity prior to the upcoming market surge. Consequently, a decline in price towards $28 could serve as an optimal moment for purchasing, considering the current market indicators.
Read More
- JASMY PREDICTION. JASMY cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- Top gainers and losers
- BOO PREDICTION. BOO cryptocurrency
- SILLY PREDICTION. SILLY cryptocurrency
- LUNA PREDICTION. LUNA cryptocurrency
- CTC PREDICTION. CTC cryptocurrency
- CLV PREDICTION. CLV cryptocurrency
- DOP PREDICTION. DOP cryptocurrency
- LOKA PREDICTION. LOKA cryptocurrency
2024-06-02 22:15