Ethereum Classic: These levels could be the demand zone next week
Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation.
Like many altcoins within the crypto sphere, Ethereum Traditional [ETC] has additionally been on a long-term downtrend on the charts. In February and March, the value did in truth break the long-term bearish market construction by climbing to the $52 highs. Nevertheless, the start of April noticed the altcoin diving decrease on the charts. This was aided by Bitcoin [BTC]’s descent from the $47k resistance ranges as nicely.
ETC- 12-Hour Chart
Supply: ETC/USDT on TradingView
On 12 Might, ETC dropped from $20 to $16 and managed to bounce to $21 on 13 Might. This highlighted the whole space between $16-$18 as a powerful demand zone. From this zone, ETC was capable of see a big bounce.
Towards the tip of Might, the value was capable of advance as excessive because the $25.3 resistance degree. But, this rally didn’t sign a reversal in development. Moderately, it served so as to add gas to the bearish fires. Per week into June, the $21.6 assist degree was examined and shortly gave method.
The worth made a collection of decrease highs in latest weeks and has made one other one on 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
Supply: ETC/USDT on TradingView
The Relative Power Index (RSI) on the 12-hour chart has struggled to remain above the impartial 50. Previously two months, each foray above this degree was an unenthusiastic journey. The RSI was way more inclined to go southward. This instructed a bearish development was dominant in latest months.
The On-Stability Quantity (OBV) additionally discovered it exhausting to push larger and has slowly slipped decrease to make a collection of decrease highs like the value. This indicated excessive promoting quantity and a scarcity of sturdy demand to reverse the downtrend.
The Chaikin Cash Circulation (CMF) has been above the +0.05 mark in latest days to point out the inflow of great capital into the market. Nevertheless, it too turned southward as of 29 June.
Conclusion
Contemplating Ethereum Traditional’s situation on the value charts, one other push downward appeared probably. The promoting stress was mounting as soon as extra, and the momentum remained bearish on the upper timeframes. The $13.6 and $10.4 might be examined as assist ranges over the subsequent few weeks.
