ETC Technical Analysis: Is This Bullish Flag A Trap For Buyers?
Table of contents
Key Technical Points:
Past Performance of ETC
As we mentioned in our previous analysis, the ETC prices displayed a successful post-retest reversal from the $33 mark to reach overhead resistance of $45. However, the bullish rally reverses from the $45 mark to retest the $38 breakout resulting in the formation of a rising wedge. Furthermore, the increasing wedge forms a bullish flag pattern with an 80% bull run in July 2022.
Source - Tradingview
ETC Technical Analysis
The ETC price action forms a morning star pattern in the daily chart as prices take a reversal from the support trendline. Hence a short-term buying opportunity arises as the trend may shortly reach the $45 mark close to the resistance trendline.
After the recent Golden Crossover, the bullish influence over the 100-day EMA increases, projecting a crossover possibility with the 200-day EMA.
The daily RSI slope maintains a downward trend in the nearly overbought zone, crossing below the 14-day average line. Moreover, the MACD indicator displays the fast and slow lines carrying a declining trend with the rising intensity of the negative histograms. Hence the technical indicators maintain a negative standpoint for the upcoming trend in Ethereum Classic prices.
In a nutshell, the ETC Technical Analysis displays a weakness in the bullish pattern, warning of a downfall possibility.
Upcoming Trend
The uptrend continuation in the ETC prices will break above the $45 resistance confluence to reach $50.
On the contrary, the fallout rally below the support trendline may test the $33 level, accounting for a 15% drop.
Resistance Levels: $45 and $50
Support Levels: $38 and $33