Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
On 12 May, Bitcoin sunk to $26.7k, and Ethereum Classic touched the $16 mark at its lows. Since then, the worth has bounced fairly a bit. Yet, with Bitcoin caught inside a variety of $30.7k and $28.7k, the altcoin market has not initiated a restoration. The concern available in the market remained sturdy, and rallies are for promoting. This possible holds true for Ethereum Classic too, and the $24 degree noticed the worth pullback to $22.
Could the bears impose their will available on the market as soon as extra?
ETC- 1 Hour Chart
Source: ETC/USDT on TradingView
For the transfer up from $19.41 to $24.23, a set of Fibonacci retracement ranges was drawn (yellow). On the decrease timeframes, the worth has fashioned a sequence of decrease highs and decrease lows up to now 4 days. The push previous $21.8 the day gone by by the bulls was on excessive buying and selling quantity, though the pullback additionally noticed heavy quantity. However, it appeared to recommend that the consumers had some energy available in the market.
Now the query is- Could Ethereum Classic proceed to climb? It definitely appeared so on the hourly timeframe. Yet, an inspection of upper timeframes confirmed that the $24.4 degree was a robust resistance degree. At the identical time, the $21.6-$21.8 space has been flipped from resistance to help. A transfer beneath $21.6 would possible sign bearish power within the coming days.
Rationale
Source: ETC/USDT on TradingView
The Awesome Oscillator noticed a pointy spike upward in response to ETC’s rally to $24.2. However, in current hours, the worth slipped again beneath the zero line to point out rising bearish dominance. At the identical time, the MACD additionally fashioned a bearish crossover and dived towards the zero line.
The A/D has been comparatively flat up to now week, aside from the wild swing upwards on the day gone by. This urged that purchasing and promoting strain has been almost equal. If Ethereum Classic was on the verge of restoration, the A/D would possible have been climbing in current days to point out sturdy shopping for quantity. However, this was not the case.
Conclusion
The lack of consumers, mixed with the fears round Bitcoin, urged that Ethereum Classic had a very good likelihood of heading decrease on the charts. The $21.6 mark is one to be careful for, and a session shut beneath this degree might push the costs decrease on the chart.
