Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation.
Ethereum Traditional [ETC] has posted sizeable positive aspects prior to now two weeks because the bulls refused to let the worth slide beneath the $30 mark. They have been capable of drive a rally as excessive as $42 earlier than dealing with rejection.
Information of the Merge may even have had an impact as miners shifted to the ETC which resulted in an increase within the hash charge for the PoW coin. This charge has grown since mid-August, however the worth has not been in lockstep with these developments. Bitcoin’s [BTC] plunge the day before today didn’t assist the bulls both.
ETC- 1-Day Chart
Supply: ETC/USDT on TradingView
The worth charts confirmed two issues. One, ETC was nonetheless inside a long-term downtrend. Regardless of the sturdy positive aspects in July and August, the worth was unable to interrupt earlier highs, stretching again all the way in which to September 2021.
There have been sizeable rallies in between these downward strikes. Since November final 12 months, ETC has posted swing highs at $64, $52, and $46, every of which was decrease than the earlier.
The opposite factor the charts confirmed was that ETC was in an necessary zone of provide and demand. The $35-$37 space has acted as resistance for the reason that starting of 2022. The $50 has additionally been the next timeframe space of significance.
A set of Fibonacci retracement ranges (yellow) have been plotted primarily based on ETC’s transfer down from $52.66 to $12.47. It confirmed the 78.6% and 61.8% retracement ranges have been at $44.06 and $37.31. Furthermore, these ranges have additionally been revered by the worth in current weeks of buying and selling.
Rationale
Supply: ETC/USDT on TradingView
The symptoms confirmed that some bullishness nonetheless remained behind Ethereum Traditional. The Relative Power Index (RSI) managed to remain above impartial 50 regardless of the volatility prior to now two weeks. This prompt that momentum may proceed to favor the bulls.
The On-Steadiness Quantity (OBV), then again, was relatively flat. It confirmed shopping for and promoting quantity throughout the previous month to be roughly equal and hinted on the lack of dominance from both camp.
In settlement with the discovering, the Chaikin Cash Move (CMF) additionally trod water in impartial territory. It has even dipped beneath -0.05 to stipulate vital capital movement out of the market.
Alternatively, the Directional Motion Index (DMI) confirmed that September noticed a robust uptrend for ETC.
Conclusion
The symptoms confirmed some bullish momentum however an absence of regular, sturdy demand from consumers. The worth motion highlighted the $37 and $50 areas to be of specific significance, with the Fibonacci retracement anticipated to behave as help and resistance as nicely.
Bitcoin would seemingly closely affect ETC within the coming weeks. Bitcoin, in flip, could be influenced by the worldwide markets as nicely. The shortcoming to rein in inflation within the U.S. may catalyze a transfer downward over the subsequent month.