Decoding Ethereum Classic’s unprecedented gains and what lies ahead
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
Bitcoin [BTC] had a tumultuous start to the trading week. On 5 September, the king of crypto reached a high of $20,180 and a low of $19,630. A few hours prior to writing, BTC had surged from $19.8k to $20.1k.
In the next hour of trading, BTC undid all those gains to slump back to $19.7k. Ethereum Classic [ETC] was unperturbed by this chaos. The altcoin broke emphatically past the $34.3 resistance mark and has posted a further 17% hike with high buying volume.
Source: ETC/USDT on TradingView
A set of Fibonacci retracement levels (yellow) were plotted based on ETC’s move down from $38.38 to $30.34 in late August. The 50% and 38.2% retracement levels have served as important resistance levels in the past week.
In the past few hours of trading, ETC smashed its way above these resistances. 23.6% and 61.8% Fibonacci extension levels lie at $40.28 and $43.35. These areas can be used to take a profit.
A buying opportunity might arise on a session close above $40.28. A stop-loss below $40 and a target of $43 could be an aggressive trade to enter. Considering the strong upward momentum ETC has, such a bet could be profitable.
The $37-$38 area represents a fair value gap that ETC left behind as it rocketed skyward. A revisit to this zone could also offer a buying opportunity.
Source: ETC/USDT on TradingView
The hourly Relative Strength Index (RSI) was in the overbought territory and has been for many hours now. The Stochastic RSI plummeted, while the A/D line reached higher.
The A/D showed a high influx of buying volume in recent hours. This fact was also visible on the volume bars beneath the price action.
Th
Read more on ambcrypto.com
