ETC Prices Skyrocket, Ready To Test The Broken Resistance Trendline
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After failing to sustain above the ascending support trendline, the ETC prices dropped by 25% within a week. However, the buyers quickly regain trend control near the $30 mark, resulting in a Morning Star pattern reversal. But will the reversal rally reach the $44 mark, or will the prevailing downtrend regain momentum?
Key Points:
Source - Tradingview
ETC Technical Analysis
The bearish breakout of a flag pattern in the daily chart lenses the ETC price is 25% within a week to test the buyers at $32. However, the buyers successfully halted the downtrend and reversed it with a Morning Star pattern.
The bullish reversal rally accounts for a 15% jump within the last week, with multiple lower price rejections reflecting high trend momentum.
Despite the multiple bullish candles asserting buyers' dominance over the price trend, the trading volume fails to reflect any exceptional surge. Hence traders hoping to ride the bullish rally must wait for the $38 breakout.
The $38 breakout rally can test the overhead resistance of $44 and potentially reach the psychological mark of $50. On the other hand, a bearish reversal might create another bottom at the $32 support level near the 50-day SMA.
Technical Indicators
The RSI slope displays an increase in the underlying bullishness as it crosses about the halfway line to challenge the 14-day SMA.
Moreover, the fast and slow lines display a bullish reversal projecting a crossover event shortly as the bearish histograms lose their intensity.
Hence the technical indicators represent a weakness in the underlying bearishness and increase the possibility of an uptrend in ETC prices.
Resistance Levels: $38 and $44
Support Levels: $33 and $30