Ethereum Classic [ETC]: Two important levels that could offer profitable trades
Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation
Bitcoin noticed volatility inside a variety it has been buying and selling inside for almost a month now. It confronted stern rejections every time it tried to climb above the $31.5k-$32k mark, and a bullish bias was not obvious for many of the crypto market as nicely. Ethereum Classic additionally fashioned a variety over the previous three weeks, and in the previous couple of days of buying and selling, the worth has fallen beneath a assist degree as nicely. Could the vary lows be revisited as soon as once more?
ETC- 2 Hour Chart
Source: ETC/USDT on TradingView
The Volume Profile Visible Range from the beginning of May to the present buying and selling session confirmed the Point of Control to be at $22.79. The Value Area Lows and Highs lie at $19.77 and $25.39 respectively.
It might be seen that the worth has traded inside this vary for the reason that bounce on May 13. At the identical time, one other degree of short-term significance lies at $21.62, and it was flipped from assist to resistance previously couple of days.
Therefore, the short-term bias is bearish, and a transfer towards the $20 mark may very well be possible within the coming days.
Rationale
Source: ETC/USDT on TradingView
The RSI on the H2 chart has been beneath impartial 50 for many of June, apart from one surge to the 72 mark. This occurred when ETC climbed to $23 and above the POC, however was shortly rebuffed. The Stochastic RSI appeared to type a bullish crossover. If it reached the overbought zone and types a bearish crossover within the coming hours, alongside a retest of impartial 50 on the RSI, it may very well be an early sign of a southward transfer.
The CMF was at +0.09 on the time of writing and has been above +0.05 for a couple of days previously week. Hence, the indicator confirmed that purchasing stress and capital move was in favor of the bulls.
Conclusion
Despite the CMF’s findings, it was possible that ETC would retest the $21.6-$22 space as resistance and transfer towards $20 over the following couple of days. The momentum was with the bears, and the short-term market construction was additionally bearish after ETC crashed straight previous the $21.6 assist degree two days in the past.
