ETC PRICE ANALYSIS: ETHEREUM CLASSIC BREAKS OUT FROM DOWNTREND, TRADES IN ACCUMULATION PHASE

  • ETC bounced from a low of $98.57 to a high of $114.12 all in Saturday’s intraday session 
  • The ETC/BTC pair is trailing at 0.0021 BTC with a gain of 2.21% at press time
  • ETC is currently ranked #16 with a live market cap of $12,020,750,261,34 and a market dominance of 0.53%

ETC kicked off Friday’s intraday session on a bullish note as evidenced by the massive green candlestick smashing right through the bullish flag pattern. The momentum was further restricted inside the accumulation phase as ETC managed to flip the critical resistance level of $98 as support.

At present, ETC is having a troublesome time in tackling the $110 resistance level as opposed by the bears. The coin also seems to be back in play after entertaining a bullish cross by the 20 EMA and the 50 EMA which were once suppressing the momentum. However, a bearish cross on the stochastic RSI would plunge ETC below the range of $100 making it vulnerable for the bulls. 

ETC PROJECTS HIDDEN BULLISH DIVERGENCE ON THE 1-HOUR CHART.

The 1-hour chart of ETC is forecasting a bullish trend reversal for ETC as suggested by the hidden bullish divergence. A decisive close above the resistance of $110 (FIB 0.236) would confirm ETC’s exit from the accumulation phase.

When we take a closer look at the descending channel, it appears that the price action has not only been successful in breaking towards the upside but also has tested that trend line as support. This demonstrates the fact that ETC has entered the bull market after a strong sell-off in previous trading sessions. The RSI (bullish) has found significant support in the range of 48 and might head towards the overbought territory after indicating divergence on the 1-hour chart. The MACD (slightly bullish) is trading inside the positive territory. A bullish crossover would lay the ground for another impulsive wave. CONCLUSION: ETC is currently trading at a low of 43% from its ATH which might look worrisome but it still doesn’t change the fact that the coin is backed by significant trading volume. ETC faced selling pressure when the entire market went into a tailspin but the coin recovered only in a matter of four days. The recovery was confirmed once the price action formed the morning star pattern on the daily time frame.

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