Decoding Ethereum Classic’s unprecedented gains and what lies ahead
Disclaimer: The results of the analysis below are the author’s sole opinion and should not be considered investment advice.
bitcoin [BTC] A turbulent start to the trading week. On September 5, the king of cryptocurrencies reached a high of $20,180 and a low of $19,630. In the hours before this article was written, BTC surged from $19,800 to $20,100.
In the following trading hours, BTC erased all these gains, falling to $19.70.ether classic [ETC] Indifferent to the chaos. The altcoin broke the $34.3 resistance and gained a further 17% purchase amount.
ETC – 1 hour chart
A set of Fibonacci retracement levels (yellow) are drawn based on ETC’s fall from $38.38 to $30.34 at the end of August. The 50% and 38.2% retracements have been important resistance levels over the past week.
ETC broke through these resistance levels in the past few hours of trading. The 23.6% and 61.8% Fibonacci extension levels are located at $40.28 and $43.35, respectively. These areas can be used for profit.
A buying opportunity may appear at the close of the trade $40.28+. Stops below $40 and a target of $43 could be aggressive trades to enter. Given ETC’s strong upward momentum, such bets could be lucrative.
The $37-38 area represents the fair value gap left by ETC as it surges. A revisit to this area could also provide a buying opportunity.
The hourly Relative Strength Index (RSI) is in overbought territory and has been for several hours. The stochastic RSI plummeted while the A/D line moved higher.
The A/D shows an influx of buying in recent hours. This fact can also be seen on the volume bars below the price action.
The presence of strong demand means the pullback is likely to be shallow. also, $41.24 and $44 levels Has been a significant resistance level in August.
Demand has been strong in recent hours, but the $41 and $44 marks have severely hampered further northward moves. Therefore, a drop to the $37-38 region could be used to buy ETC.
In the event of such a pullback, the health of BTC also matters. Bitcoin needs to remain neutral or bullish to pave the way for further gains in ETC.