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Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the opinion of the author.
World inventory market indices have been in a freefall over the previous two weeks. Bitcoin has additionally seen extreme losses over the identical time interval, measuring near a 35% drop. Given this backdrop, the altcoin market has additionally quickly shed worth. Ethereum Classic noticed a near-term bullish market construction break. But, this may doubtless not be sufficient to reverse the robust downtrend for the altcoin.
ETC- 4-Hour Chart
Supply: ETC/USDT on TradingView
On the H4 chart, it may be seen that the worth has set a sequence of decrease highs since late Might. What isn’t proven on the charts is that this downtrend stretches again to early April.
On the time of writing, there have been two zones of nonetheless resistance for ETC. The higher one was $18, and the decrease one at $14.8, each demarcated by pink bins. Furthermore, the 38.2% Fibonacci retracement degree added confluence to the $18 resistance zone.
ETC broke previous the $15.3 degree previously couple of days of buying and selling. This flipped the near-term market construction to bullish. The $13.89 assist additionally regarded to have been defended.
But, the upper timeframe bias stays strongly bearish. Due to this fact, a shorting alternative might quickly current itself.
ETC- 1 Hour Chart
Supply: ETC/USDT on TradingView
The H1 chart highlighted the bullish construction flip, however the $16.15 degree has not but been overwhelmed. In reality, the sweep of this degree the day past earlier than a transfer decrease steered that the pattern was firmly bearish.
Therefore, The complete area from $14.6 to $16.1 can be utilized to enter a brief place. Bearish divergence on a timeframe increased than the H1 might supply a extra exact entry.
Supply: ETC/USDT on TradingView
The RSI on the hourly was preventing with the impartial 50 mark. Even when the hourly RSI climbs increased, it might not counsel a pattern reversal. The OBV noticed a spike increased on the day past of buying and selling, whereas the CMF climbed to -0.04.
Taken collectively, it steered the presence of some shopping for strain. But, it wasn’t overwhelming strain, and may not imply a pattern reversal to the bullish aspect.
Conclusion
The upper timeframe bias stays bearish, regardless of the bullish break on the decrease timeframes. The $16.15 degree stays unbroken, and the $14.8 can be a zone of resistance.
Due to this fact, a brief place could be scaled into between the $14.8 and $16.1 ranges, with a stop-loss simply above $16.3. To the south, the 23.6% Fibonacci extension degree at $10.13 could possibly be a bearish goal.
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