Ethereum Classic Showed Double Digit Gains; What’s next!
Ethereum Classic had experienced a sharp price drop on January 17, but at the time of writing, ETC was seeing a recovery. In the past 24 hours, ETC was up close to 7% and traded at $28. In the past week, ETC made a gain of about 17% and had passed the $25 price level.
ETC has struggled near the above price level for the past few weeks. However, with a gain of almost 17% in the past week, ETC has now managed to break the downward trend. Bitcoin was bordering $39k at the time of writing. When Bitcoin rose on the map, major altcoins followed the same price movement.
Price Analysis: ETC/USD Four Hour Chart
Source: TradingView ETC/USD
At the time of writing, ETC was priced at $28. In recent trading sessions, the coin has fluctuated between $25 and $27 price levels, respectively. The immediate resistance for ETC was $30.31 and additional resistance levels for the coin were $34.22 and then $38.68.
On the downside, ETC was resting at the USD 25.84 support line. For Ethereum Classic to move past the immediate $30.31 resistance level, the coin must continue trading above $28 and form higher highs and lows.
ETC hadn’t traded below $28 since Jan. 18. The currency’s value fell as the currency experienced an intense sell-off. Over the past week, ETC’s buying pressure has slowly increased and at the time of writing, the asset was near the overbought zone.
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The Relative Strength Index was parked above the 80 mark, meaning the asset was overvalued at the time of writing. The RSI last hovered around the same level in November of the previous year. A push from the buyers could potentially cause ETC’s prices to correct during the coming trading sessions.
On Balance Volume also recovered significantly as OBV had rebounded, signaling that volume inflows had increased and signaling bullishness in the market. Awesome Oscillator depicted green signal bars being boosted at press time.
The technical outlook for Ethereum Classic remained quite optimistic. With a continued push from the bulls, ETC could soon trade above the immediate resistance mark.
What’s next for Ethereum Classic
Image Source: TradingView ETC/USD
Ethereum Classic moved close to $28, but ETC prices have been trading around the same price area for the past few days. The resistance was strong at 50% Fib. A drop from the current price level would push ETC back to $25 and then finally to $22.
A move above the current price level could cause ETC to experience another pullback at $31.80, the 78.6% Fibonacci level. A key resistance point for ETC was at the $34.55 level, Ethereum Classic traded at this price just a few weeks ago.
Power from the broader crypto market would be needed for Ethereum Classic to continue trading in the upward direction. If Bitcoin trades above $40k, major altcoins may also remain bullish on their charts.
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