Ethereum Classic’s [ETC] breakout chances – The when, how, and why of it all

Disclaimer: The results of the following analysis are the only opinions of the writer and should not be considered investment advice

After a significantly steep uptrend for a month, Ethereum Classic [ETC] has seen a relatively boring week. The resurgence of selling has brought the altcoin below the four-hour 200 EMA (green) to reveal its bearish edge.

Breaking the print time of the altcoin beyond the trendline support (white, dashed) could prevent the series of red candles in the coming sessions.

At press time, the altcoin was trading at $ 33.67, down nearly 1.7% in the past 24 hours.

4-hour ETC chart

Source: TradingView, ETC / USDT

ETC has seen a staggering ROI of over 200% from its mid-July lows. As a result, it hit its four-month high on August 13.

Over the past few days, ETC has entered high volatility after returning from the $ 44 zone. This sell-back helped the bears find a close below the 20/50/200 EMA in this time frame. Meanwhile, the one-week trendline support (yellow, dashed) and the $ 32 baseline coincided and offered bounce grounds for ETC.

However, with the bears aiming to inflict a bearish crossover of the 20/200 EMA, the bulls have yet to increase buying volumes. The close above the 200 EMA can help buyers retest the 20 EMA region in the $ 35- $ 36 range.

If the broader sentiment continues to fuel bearish vigor, the altcoin would likely see a reversal from the short-term EMAs on its southward journey. If buyers remain adamant on defending the $ 32 level, ETC could be in a squeeze phase.


Source: TradingView, ETC / USDT

The Relative Strength Index (RSI) saw a solid surge from the ashes of its oversold lows. Sustained growth above the 40 mark would further strengthen the prospects for a short-term recovery.

On the other hand, the CMF could not corroborate the lower lows of the price action. Therefore, forming a bullish divergence in this time frame. Furthermore, the MACD lines were on the verge of a bullish crossover. The continued northward movement of these lines could trigger a phase of low volatility before a breakout.


Given the decline in sales volumes coupled with the potential of the indicators, ETC could see a short-term recovery before falling back on its bearish track. The death cross on the EMAs could confirm the bearish bias. The goals would remain the same as discussed.

Finally, broader market sentiment and developments on the chain would play a pivotal role in influencing future movements.

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