Ethereum Classic (ETC): Can Breakout Trigger Rally or It’s a Bull Trap?
The stock market has seen declines within the previous two weeks. That had Bitcoin in severe losses as its tracked the stock space. The bellwether crypto lost approximately 35% in the timeframe. Such conditions saw the alt market on sharp value declines. Meanwhile, Ethereum Classic broke its short-term market structure. However, that is unlikely not enough to halt the massive downtrends for the token.
Ethereum Classic 4Hr Timeframe
The 4-hour chart shows ETC formed multiple lower peaks since the late sessions of May. Keep in mind that the altcoin has seen declines since early April. Two resistance zones ensure resistance for Ethereum Classic at this publication. The topside one stood at $18, while $14.8 represented the lower level. Furthermore, the 38.2% FIB retracement mark increased confluence to the resistance level at $18.
The past trading days saw Ethereum Classic breaking past $15.3. That overturned the short-term market sentiment to bullish. Moreover, buyers defended the support at $13.89. On the other side, bears dominate the broad timeframe. Thus, a shorting opportunity might emerge soon.
Ethereum Classic 1Hr Timeframe
The one-hour chart confirmed the bullish flip, though ETC is yet to conquer the $16.15 mark. Moreover. Yesterday’s sweep of the mark before a downside move affirmed a massively bearish trend. Therefore, interested individuals can use the value area between $14.6 and $16.1 to execute short positions. Bearish divergence on periods past the 1hr timeframe might present a precise entry.
The hourly Relative Strength index fought with the 50-neutral. Meanwhile, the RSI would not signal trend reversals even if it surges higher. Yesterday’s trading sessions had the on-balance volume on an uptick, whereas the Chaikin Money Flow hiked to -0.04.
These factors indicated some buying momentum. However, the pressure wasn’t overwhelming and could not confirm trend reversals to bullish.
Final Thought
Trends on the higher timeframe remain bearish, regardless of the optimistic break within the shorter timeframes. The altcoin is yet to overcome the $16.15 mark, while $14.8 represents a resistance zone. Thus, investors can scale a ‘short’ position between $14.8 and $16.1. they can place a stop loss beyond $16.3. Meanwhile, southbound actions might target a 23.6% FIB extension at $10.13.
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