Ethereum Classic: The next 48 hours could be critical for traders looking to buy/sell

warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.

In two weeks, Ethereum Classic [ETH] We saw six movements on the price charts that were worth more than 10%. Most of these occurred in short batches, within a day.

With the collapse of such volatile conditions, the lower time frame and momentum could have yielded some huge gains. While volatility is a speculator’s paradise, discerning traders can struggle to get a read in the market.

ETC – 1 hour chart

Source: ETC / USDT on TradingView

Last week’s highs and lows are marked in white. Two major resistance levels in the short term were also highlighted at $39.8 and $37.5. These resistance levels have seen a noticeable price reaction and mean they are levels to watch out for, if ETC manages to move higher.

At the time of writing, it is trading in the $33 area, which was a resistance area in early September but turned into support last week. Similarly, the $35 area highlighted by the red box has been a bearish order block lately. It had a nice bounce from ETC a couple of days ago, but since then it has run out of buyers. This was proven by the price collapse right through the support belt the previous day.

Over the next day or two, the $36 area and the $37.5 level may provide selling opportunities. A retest of the $36 area could also provide a buying opportunity with targets at $37.5 and $39.8.


Ethereum Classic sees another sharp decline to hit weekly low

Source: ETC / USDT on TradingView

The Relative Strength Index (RSI) quickly dropped below its neutral 50 line to show strong bearish momentum in the last hours. Another note is that for most of the past week the RSI was below the neutral level of 50. This means that the momentum was neutral or tilted to the downside, with sudden violent movements causing the RSI to reach its extremes.

The accumulation/distribution (A/D) was also relatively constant. The big rally that occurred a week ago was sold off earlier this week. The buying and selling volumes balanced each other out somewhat and no strong trend was seen in terms of demand or supply on the lower time frames.

The Bollinger Bands Supply Index (BB) has risen in recent days to show increased volatility.


Some of the key supply and demand areas are highlighted on the charts. Turning $36 into support again could pave the way for a rally to $39.8. In the meantime, momentum and bias are skewed to the downside and buyers should exercise caution.

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