Ethereum Classic: How to Measure ETC’s Ability to Continue Its Recovery

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

During the last few weeks, Ethereum Classic [ETC] gradual growth stabilized in the $38-$39 range. This range has flipped to exhibit trends of a supply zone, especially after the most recent rejection of higher prices.

The substantial increase in buying volumes can help turn the tide in favor of the bulls. A close above this supply zone may further reaffirm the bullish bias.

Additionally, three-week trend line support (white, dashed) could take a vital position in influencing future moves for the altcoin. At press time, the alt was trading at $38.16, up 5.64% in the last 24 hours.

ETC 4-hour chart

Source: TradingView, ETC/USDT

ETC marked an outlier ROI of over 240% as the bulls locked in a staggering rally from Jul 13 to the alt’s four-month high on Jul 29. This buying comeback helped the bulls find a much needed close above the EMA bands.

In the past few days, ETC entered a compression phase near the Point of Control (POC, red) in the $36 zone. Meanwhile, the three-week trend line support, POC, and the 20 EMA coincided to offer rebounding ground for ETC.

However, with the immediate supply zone [$38-$39] Keeping a check on the recent rally, the bulls still need to increase buying volumes.

The bounce off the 20 EMA may help buyers retest immediate resistance before a possible volatile breakout to the upside. In this case, the potential target would be in the $40-$41 range.

If broader sentiment erodes bullish vigor, a close below trendline support could delay near-term recovery prospects. Buyers would try to continue their spree from the $33 baseline.

Fundamental reason

Source: TradingView, ETC/USDT

The Relative Strength Index (RSI) held its place above the midline and projected a slight bullish edge. However, it had yet to jump above the 61 mark to project strong bullish dominance.

On the other hand, the Accumulation/Distribution metric and the CMF could not substantiate the higher peaks of the price action. Hence, forming a bearish divergence on this time frame.

Furthermore, the altcoin’s directional trend took its toll and reflected rather fragile strength.

conclusion

Eyeing the confluence of trend line support along with the EMA and POC ribbons, ETC bulls would be striving for high volatility in the coming sessions. However, the bearish divergences in the indicators could cause slackness in the face of a probable recovery. In any case, youThe objectives would remain the same as discussed.

Last but not least, broader market sentiment and on-chain developments would play a vital role in influencing future moves.

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