Cryptocurrency

Ethereum Classic: These levels could be the demand zone next week

Disclaimer: The findings of the following evaluation are the sole opinions of the author and mustn’t be thought-about funding recommendation.

Like many altcoins in the crypto sphere, Ethereum Classic [ETC] has additionally been on a long-term downtrend on the charts. In February and March, the worth did in actual fact break the long-term bearish market construction by climbing to the $52 highs. However, the starting of April noticed the altcoin diving decrease on the charts. This was aided by Bitcoin [BTC]’s descent from the $47k resistance levels as nicely.

ETC- 12-Hour Chart

Source: ETC/USDT on TradingView

On 12 May, ETC dropped from $20 to $16 and managed to bounce to $21 on 13 May. This highlighted the total space between $16-$18 as a robust demand zone. From this zone, ETC was capable of see a big bounce.

Toward the finish of May, the worth was capable of advance as excessive as the $25.3 resistance stage. Yet, this rally didn’t sign a reversal in development. Rather, it served so as to add gas to the bearish fires. A week into June, the $21.6 help stage was examined and shortly gave manner.

The worth made a collection of decrease highs in latest weeks and has made one other one at the $17.7 space. Thus, it confirmed the $16-$18 space as a resistance zone and pointed towards an additional draw back. The 21-period SMA (orange) fashioned a bearish crossover beneath the 55-period SMA (inexperienced) a few weeks in the past, to spotlight the bearish momentum additional.

Rationale

Ethereum Classic seeks support once more but the closest level might be too weak to hold on

Source: ETC/USDT on TradingView

The Relative Strength Index (RSI) on the 12-hour chart has struggled to remain above the impartial 50. In the previous two months, each foray above this stage was an unenthusiastic journey. The RSI was much more inclined to go southward. This steered a bearish development was dominant in latest months.

The On-Balance Volume (OBV) additionally discovered it arduous to push greater and has slowly slipped decrease to make a collection of decrease highs like the worth. This indicated excessive promoting quantity and an absence of robust demand to reverse the downtrend.

The Chaikin Money Flow (CMF) has been above the +0.05 mark in latest days to point out the inflow of great capital into the market. However, it too turned southward as of 29 June.

Conclusion

Considering Ethereum Classic’s situation on the worth charts, one other push downward appeared possible. The promoting stress was mounting as soon as extra, and the momentum remained bearish on the greater timeframes. The $13.6 and $10.4 could be examined as help levels over the next few weeks.

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