Ethereum Classic witnessed a somewhat dull week following significantly sharp uptrends for one month. The selling resurgence dragged the alternative token beneath the 4hr 200 Exponential Moving Average, revealing a bearish superiority.
While publishing this post, the altcoin broke above the trend-line support. And that might prevent the red candlesticks spree in the upcoming sessions. ETC traded at $33.67 during this writing, losing around 1.8% within the past 24 hours.
Ethereum Classic 4Hr Timeframe
Ethereum Classic saw a whopping return on investment of more than 200% from mid-July lows. Consequently, it touched a 4-month peak on August 13. The past few days saw ETC breaking into massive volatility, following reversals from $44.
The selling comeback bolstered bears to secure a closing beneath the 20-50-200 Exponential Moving Average at the four-hour chart. Meantime, the week-long trend-line support coincided with the baseline at $32 and provided Ethereum Classic rebounding opportunities.
Nevertheless, bulls should amplify buying volumes as bears target to ensure a pessimistic cross of the 20-200 Exponential Moving Average. The closing beyond the 200 Exponential Moving Average might back buyers to retest the 20 Exponential Moving Average area at $35 – $36.
Continued bearish bias from the broad market might trigger reversals from the short-term Exponential Moving Averages amid its southbound tendencies. Ethereum Classic will likely witness a compression phase if buyers remain dedicated to defending $32.
Reasoning
The RSI (Relative Strength Index) witnessed an impressive increase, rising from oversold lows. Sustained growth above 40 would reinforce the short-term reversal prospects. Meanwhile, the Chaikin Money Flow (CMF) couldn’t verify the lower troughs by ETC prices.
That welcomed a bullish divergence. Also, the Moving Average Convergence Divergence seemed ready for a bullish crossover. The extended northbound move by these lines might catalyze a low volatility period before breakouts.
Final Thought
Considering the receding selling momentum plus the indicators potential, Ethereum Classic might witness a short-term reversal before plummeting to bearish shackles.
The EMAs death cross might highlight bearishness for the altcoin. Targets would remain as mentioned above. Lastly, on-chain activity and overall market analysis would be crucial in swaying future price movements.
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