ETC Technical Analysis: Range Below 200-day SMA Warns Correction
Table of contents
Key Technical Points:
Past Performance of ETC
As mentioned in our previous analysis, the ETC prices struggle to surpass the 200-day EMA at the $28 mark. The consolidation range forms with the support of the 100-day SMA and the $22 support level and has kept the trend constrained for the last week. However, the higher price rejection candles near the 200-day SMA reflect a stronger bearish position.
Source - Tradingview
ETC Technical Analysis
The 8% growth overnight propels ETC prices higher within the range and undermines the bearish fall of 9% as the recovery regains bullish momentum. However, the failed bullish breakout attempts warn traders to wait for a price action confirmation.
The market price of Ethereum Classic remains trapped within the 100 and 200-day SMA but influences positive growth in the 50-day SMA. Hence, the possibility of a bullish crossover between the 50 and 100-day SMA.
The MACD and signals lines remain in a bullish alignment, but the declining trend in bullish histograms warns of a crossover event to change the trend. Moreover, the RSI indicator shows a bearish divergence forecasting a fallout under $22.
In simple terms, the technical indicators take a strong bearish standpoint and oppose the bull cycle within the range.
Upcoming Trend
The ETC market value will take a sharp bullish turn if the daily candle closes above the $28 mark. After that, traders can expect the breakout rally to reach the $33 resistance accounting for a 20% surge. However, a downfall below $22 will result in a price drop to $18.8.
Resistance Levels: $28 and $33
Support Levels: $22 and $18.8