Here is where Ethereum Classic could head in the coming week PlatoAiStream PlatoAiStream. Data Intelligence. Vertical Search. Ai.

Here is where Ethereum Classic could head in the coming week

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

Ethereum Classic (ETC) steadily withdrew in a descending channel (yellow) for nearly 16 weeks. The 20 EMA (red) assumed a strong resistance until the bulls flipped it to support on 4 February.

From here on, a convincing close above the $32.8-mark would prepare ETC for a retest at the $34.87-level. If the buyers continue to build up pressure at its immediate resistance, a retest near its three-month Point of Control (red) would be likely before a slight pullback. At press time, ETC was trading at $32.63, up by 5.1% in the last 24 hours.

ETC Daily Chart

Here is where Ethereum Classic could head in the coming week PlatoAiStream PlatoAiStream. Data Intelligence. Vertical Search. Ai.

Source: TradingView, ETC/USDT

The down-channel retracement saw a nearly 66.9% fall as it snapped off multiple price points. For instance, the bears flipped the $35-mark Point of Control from support to resistance. 

However, ETC noted an over 74% ROI from its nine-month low on 22 January as it flipped the 50 EMA to its immediate support. But, it struggled to topple the $34-mark as it formed a bearish divergence (white trendline) with its RSI. 

Now, the buyers exerted sustained pressure and have tested the $32-mark resistance twice in the last three days. This level has offered the highest liquidity after its three-month Point of Control. Thus, making it difficult for the bulls to initiate a swift recovery. Any close above this level would propel a $34-retest. Should the buyers lose their vigor, the 50 EMA would provide testing support in the near term. 

Rationale

Here is where Ethereum Classic could head in the coming week PlatoAiStream PlatoAiStream. Data Intelligence. Vertical Search. Ai.

Source: TradingView, ETC/USDT

The RSI has maintained itself above the half-line and showed healthy revival signs after the bearish divergence. It respected the bullish trendline support (yellow) in its upward trajectory. Also, the Supertrend finally entered into a green zone after nearly 11 weeks. If the MACD enters into a tight phase, a further clash between the buyers and sellers at this level could be expected. 

Conclusion

So far, ETC has depicted a healthy reversal as it sustained above the 20 EMA for the past 11 days. Also, the current trading price was near its EMA’s, hinting at higher chances of a movement in the current trend.

Considering the confluence between these factors and a possible close above the $32-level resistance, a retest of the $35-zone could be conceivable. Besides, the broader market sentiment and the on-chain developments would play a vital role in influencing future movements. 

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