Ethereum Classic [ETC]: The next buying opportunity can be found at…
Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
Ethereum Traditional has a bullish outlook for the following few weeks. Even on an extended timeframe, Ethereum Traditional is at a spot that provides an incredible risk-to-reward shopping for alternative. The $34-$36 space presents an space of demand, one which has been an space of resistance since December.
The value shot previous this space in late March. On the time of writing, it had revisited this space searching for demand.
Ethereum Traditional – 12 Hour Chart
Supply: ETC/USDT on TradingView
Based mostly on the transfer from $26.52 to $52.7, a set of Fibonacci retracement ranges was plotted (yellow). The 61.8% retracement stage lies at $36.52. The whole space from 61.8%-78.6% is technically a shopping for alternative as sturdy strikes retrace to sure percentages earlier than a resumption of the previous pattern.
Furthermore, going again to mid-December, the $35-$36.5 zone has been an space of resistance. On the time of writing, the worth had retested this space and located some demand. Going ahead, a transfer upward will be initiated from the $36-area.
For long-term traders, as long as the worth doesn’t dip beneath $32.12, a shopping for alternative can nonetheless current itself. $36.52, $33.52, and $32.12 are ranges that may be anticipated to behave as help, ought to ETC see an additional dip.
Rationale
Supply: ETC/USDT on TradingView
On the 12-hour chart, the RSI flashed an everyday bullish divergence simply as the worth examined a zone of demand. Therefore, a bounce in worth might be imminent. However, the DMI pictured a robust bearish pattern in progress. The ADX (yellow) and -DI (pink) had been each above 20.
The OBV has been on a downtrend as the worth pulled again, nevertheless, the shopping for quantity when the worth broke out previous $36 was fairly excessive. If the OBV can proceed to climb larger, alongside the worth, it could be a sign of a real upward transfer.
Conclusion
The value had retraced to a zone of demand at $36, and a bullish divergence was noticed. A retest of this zone within the subsequent few days generally is a shopping for alternative. Equally, a transfer above $38.65 and its retest as help can be a shopping for alternative.
