Within the last two weeks, the stock market has been on the decline. As a result, Bitcoin suffered significant losses as it tracked the stock market. In that timeframe, the bellwether crypto lost about 35% of its value. As a result of these circumstances, the alt market’s value has plummeted. Meanwhile, Ethereum Classic’s short-term market structure has been broken. However, this is unlikely to be enough to stop the token’s massive downtrends.
Timeframe for Ethereum Classic is 4 hours.
Since the late sessions of May, ETC has formed multiple lower peaks on the 4-hour chart. Keep in mind that since early April, the altcoin has been losing value. At the time of publication, Ethereum Classic faces two resistance zones. The upper level was $18, while the lower level was $14.8. In addition, the 38.2 percent FIB retracement level has risen. confluence to the resistance level at $18.
In recent trading days, Ethereum Classic has surpassed $15.3. This shifted the short-term market sentiment from bearish to bullish. Furthermore, buyers defended the $13.89 resistance level. Bears, on the other hand, dominate the longer timeframe. As a result, a shorting opportunity may arise soon.
1 Hour Ethereum Classic Timeframe
The bullish turn was confirmed on the one-hour chart, but while ETC has yet to break through the $16.15 mark. Moreover. The sweep of the mark before a downward move yesterday confirmed a massively bearish trend. As a result, interested parties can execute short positions in the value range of $14.6 to $16.1. Bearish divergence on timeframes longer than one hour may indicate a precise entry.
The hourly Relative Power index was at odds with the 50-neutral level. Meanwhile, even if the RSI rises, it will not signal a trend reversal. Yesterday’s able to trade sessions saw an increase in on-balance volume, while the Chaikin Money Flow increased to -0.04.
These indicators pointed to some purchasing momentum. However, the pressure was not overwhelming and could not confirm bullish trend reversals.
Despite the positive break in the shorter times, trends on the higher timeframes remain bearish. The altcoin has yet to break through the $16.15 barrier, with $14.8 acting as a resistance zone. As a result, investors can scale a “short” position between $14.8 and $16.1. They can set a stop loss above $16.3. Meanwhile, southbound trades could aim for a 23.6 percent FIB extending at $10.13.