TL;DR Breakdown
- The entire crypto market is down as Bitcoin rebounds to $34k.
- Ethereum Classic started to rise today, trying to reach higher.
- ETC volumes were at all-time low when the price movement went higher.
While the majority of the crypto market is breached their crucial support levels, Ethereum Classic has started an uphill battle to reach the heights by respecting its 200-days MA by an immense margin.
When the market went down on 21st June, investors and traders were left confused and devastated. During this huge red candle, another important indication was coming into the picture and revising the volumes. Ethereum Classic volumes were seemingly at all-time lows since the beginning of May when the high volume transactions happened.
It is very necessary for traders to consider various important technical indicators before deriving any assumptions or price predictions regarding ETC. The 100-days MA breach was a huge shock for investor sentiments which created an emotional selling scenario.
Ethereum Classic trading situation for investors
However, it also significantly increased the exchange transfer volumes. It is positive to see that ETC is trading much above the 200-days with a support level of $25.31.
Investors should take care of the first resistance at $50.86. It is going to face a major resistance near the $48 and $51 zone. If it somehow crosses this zone, the next challenging level would be around $80 to $85.
On the other hand, the uptrend will be resisted until Ethereum Classic breaks the downside parallel channel. RSI also indicates retracement signs from the lows of $32.25.
For leading an uptrend motion, it is important for the Ethereum Classic to form two large green back-to-back candles on the Heikin Ashi charts. Also, one should note that the increase in trading volume will make ETC valuation more volatile. Traders should avoid making any new entries below the 200-days MA and should wait for better market positions.
From the hourly chart, fine Heikin Ashi candles colored green can be seen which is a good sign for new buyers. This reversal trend in this bearish month could become an exciting indication if ETC breaches the $50 resistance. Patience is the key here, and investors should consider the sequential buying method instead of putting all the money at once.
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