Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
In November, Ethereum Classic was rejected for $60.6 and has been in a downtrend ever since. More recently, it has encountered resistance at $38.65 and also at $34. On the downside, demand has been at $23.5 for the past two months. Was this a sign of equal lows for Ethereum Classic, or was this a temporary hiatus for further downturns?
ETC-1 daily chart
Source: ETC/USDT on TradingView
On lower time frames, Bitcoin has shown signs of bullishness. This could mean that ETC and the broader crypto market could move up in the near term. But the longer-term outlook has leaned towards the bearish side.
This was because the market structure was bearish and unbroken. In addition, while demand appeared at key support levels, it was not the kind of demand for ETC that would indicate a shift in preference for the longer-term outlook.
Rather, the demand appeared to be short-lived before profits were taken and market participants turned their bias towards bearish after a significant rebound.
At the time of writing, the price is up from $27.24, but unless the previous lower high of $34.4 can be overcome, risk averse investors would not view ETC as a buying opportunity.
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Source: ETC/USDT on TradingView
The RSI has fluctuated from near the 35 value to 70 and back to 35 in recent weeks. At the same time, ETC hit similar highs in the $34 resistance area and bounced back from $23.5. This suggested that ETC exhibited range characteristics.
Following this idea, the $27.3-$28.6 area will become an important support level for ETC to hold.
The Awesome Oscillator was near the zero line at the time of printing and has been mainly below the zero line in a bearish trend since mid-November.
The CDV indicator also shows a steady downward trend to show that the sales volume was much greater than the purchase volume.
Conclusion
The $27.3-$28.6 area is likely to be an important support zone in the coming weeks, alongside the $23.5 level. In the north, the $34 area needs to flip to support before ETC can be considered a bullish bias.
This post Conditions for Ethereum Classic with a bullish bias include…
was published first on https://ambcrypto.com/the-conditions-for-ethereum-classic-having-a-bullish-bias-include/
