86 total views
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the opinion of the writer.
Over the past month, Bitcoin [BTC] has formed a range between $22.6k and $18.8k, with some heavy resistance at $21.8k as well. The rest of the altcoin market also formed a range. Ethereum Classic [ETC] was one of these coins. It offered a relatively low-risk buying opportunity to enter at the range lows.
ETC- 12-Hour Chart
ETC formed a range from $13.55 to $17.55. The mid-point of the range lay at $15.5, and over the past month, this level has been respected as both a support and a resistance level.
Before June, Ethereum Classic had been in a downtrend stretching back to early April. The market structure remained bearish, as none of the significant lower highs have yet been broken. On the contrary, a level of support from the mid-May crash was retested in the recent bounce to $17.5.
ETC- 4-Hour Chart
The four-hour chart showed a bullish order block for Ethereum Classic at the $13 zone, highlighted in cyan. This bullish order block sat right beneath the range lows.
Hence, even though the short-term trend over the past week was downward, it looked like a bullish move back above $15 could materialize.
The indicators on the four-hour chart pointed toward a bearish bias for Ethereum Classic. The Relative Strength Index (RSI) fell back beneath neutral 50 in the past week, while the Stochastic RSI raced toward the overbought territory. The On-Balance-Volume (OBV) has declined over the past two weeks.
Without strong demand, a rally might not occur in the next few days. Hence, apart from the $13 area, the OBV was also an indicator to keep an eye on. The Chaikin Money Flow (CMF) fell beneath the -0.05 mark a few days ago. This showed significant capital flow out of the market.
Even though the four-hour indicators showed a bearish bias for Ethereum Classic, the bullish order block at the range lows was a decent opportunity to enter a long position. A tight stop loss at the $12.2-$12.8 area can be used. Dollar-cost averaging can be used to enter a long position all the way down to $13.
However, since this trade would go against the trend, it could be riskier. Therefore, the position must be sized more carefully.
Adblock test (Why?)
Blockcast.cc does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice or recommendations. Every investment and trading move involves risk, you should conduct your own research when making a decision.