Altcoins

Ethereum Classic: These levels could be the demand zone next week

Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation.

Like many altcoins within the crypto sphere, Ethereum Basic [ETC] has additionally been on a long-term downtrend on the charts. In February and March, the value did in actual fact break the long-term bearish market construction by climbing to the $52 highs. Nevertheless, the start of April noticed the altcoin diving decrease on the charts. This was aided by Bitcoin [BTC]’s descent from the $47k resistance ranges as nicely.

ETC- 12-Hour Chart

Ethereum Classic seeks support once more but the closest level might be too weak to hold on

Supply: ETC/USDT on TradingView

On 12 Could, ETC dropped from $20 to $16 and managed to bounce to $21 on 13 Could. This highlighted your entire space between $16-$18 as a robust demand zone. From this zone, ETC was in a position to see a big bounce.

Towards the top of Could, the value was in a position to advance as excessive because the $25.3 resistance degree. But, this rally didn’t sign a reversal in development. Fairly, it served so as to add gas to the bearish fires. Every week into June, the $21.6 assist degree was examined and shortly gave means.

The worth made a collection of decrease highs in latest weeks and has made one other one on the $17.7 space. Thus, it confirmed the $16-$18 space as a resistance zone and pointed towards an extra draw back. The 21-period SMA (orange) fashioned a bearish crossover beneath the 55-period SMA (inexperienced) a few weeks in the past, to spotlight the bearish momentum additional.

Rationale

Ethereum Classic seeks support once more but the closest level might be too weak to hold on

Supply: ETC/USDT on TradingView

The Relative Energy Index (RSI) on the 12-hour chart has struggled to remain above the impartial 50. Prior to now two months, each foray above this degree was an unenthusiastic journey. The RSI was way more inclined to go southward. This recommended a bearish development was dominant in latest months.

The On-Stability Quantity (OBV) additionally discovered it onerous to push increased and has slowly slipped decrease to make a collection of decrease highs like the value. This indicated excessive promoting quantity and a scarcity of sturdy demand to reverse the downtrend.

The Chaikin Cash Movement (CMF) has been above the +0.05 mark in latest days to indicate the inflow of serious capital into the market. Nevertheless, it too turned southward as of 29 June.

Conclusion

Contemplating Ethereum Basic’s situation on the value charts, one other push downward appeared seemingly. The promoting stress was mounting as soon as extra, and the momentum remained bearish on the upper timeframes. The $13.6 and $10.4 may very well be examined as assist ranges over the following few weeks.

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