Ethereum Classic had experienced a sharp fall in price on the 17th January, however, at press time ETC was seen recovering. Over the last 24 hours, ETC had gained close to 7% and was seen trading at $28. In the past week, ETC logged gains of about 17% and had broken past the $25 price mark.
ETC struggled near the aforementioned price level for the past few weeks. However, with close to 17% gains in the past week ETC has now managed to break the downtrend. Bitcoin was bordering $39k at the time of writing. As Bitcoin had climbed up on its chart, major altcoins followed the same price movement.
Price Analysis: ETC/USD Four Hour Chart
Source: TradingView ETC/USD
At the time of writing, ETC was priced at $28. In the past trading sessions, the coin was seen oscillating between $25 and $27 price levels respectively. Immediate resistance for ETC was at $30.31 and additional resistance levels for the coin stood at $34.22 and then at $38.68.
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On the flipside, ETC was resting on the support line of $25.84. For Ethereum Classic to move past the immediate resistance level of $30.31, the coin has to continue to trade above the $28 mark and form higher highs and lows.
ETC hadn’t traded beneath the $28 mark since January 18. The coin’s value dropped as the coin met with an intense sell-off. Over the past week, ETC’s buying pressure rose slowly and at press time, the asset stood near the overbought zone.
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The Relative Strength Index was parked above the 80-mark, which meant that the asset was overvalued at the time of writing. RSI was last seen hovering around the same level in the month of November, the previous year. A push from the buyers can potentially cause ETC’s prices to experience a correction over the upcoming trading sessions.
On Balance Volume also recovered considerably as OBV had met with an uptick which signalled that volume inflow had increased and signified bullishness in the market. Awesome Oscillator depicted green signal bars which were seen amplifying at press time.
The technical outlook for Ethereum Classic remained quite optimistic. With a continued push from the bulls, ETC could soon trade above the immediate resistance mark.
What’s Next For Ethereum Classic
Image Source: TradingView ETC/USD
Ethereum Classic was moving close to the $28 mark, however, in the last few days, ETC prices were seen trading around the same price area. Resistance was strong at 50% Fib. A fall from the current price level would push ETC back to $25 and then finally to $22.
A move above the current price level might cause ETC to experience another pullback at $31.80, the 78.6% Fibonacci level. A major resistance point for ETC lay at $34.55 level, Ethereum Classic traded at this price mark just a few weeks back.
Strength from the broader crypto market would be required for Ethereum Classic to continue trading in an upward direction. If Bitcoin trades above the $40k mark, then major altcoins could also remain optimistic on their charts.
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