Ethereum Classic [ETC] rises upward, but could it be a bull trap
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
On 12 May, Bitcoin sunk to $26.7k, and Ethereum Classic touched the $16 mark at its lows. Since then, the price has bounced quite a bit. Yet, with Bitcoin stuck within a range of $30.7k and $28.7k, the altcoin market has not initiated a recovery. The fear in the market remained strong, and rallies are for selling. This likely holds true for Ethereum Classic too, and the $24 level saw the price pullback to $22.
Could the bears impose their will on the market once more?
Source: ETC/USDT on TradingView
For the move up from $19.41 to $24.23, a set of Fibonacci retracement levels was drawn (yellow). On the lower timeframes, the price has formed a series of lower highs and lower lows in the past four days. The push past $21.8 the previous day by the bulls was on high trading volume, although the pullback also saw heavy volume. However, it appeared to suggest that the buyers had some power in the market.
Now the question is- Could Ethereum Classic continue to climb? It certainly appeared so on the hourly timeframe. Yet, an inspection of higher timeframes showed that the $24.4 level was a strong resistance level. At the same time, the $21.6-$21.8 area has been flipped from resistance to support. A move beneath $21.6 would likely signal bearish strength in the coming days.
Source: ETC/USDT on TradingView
The Awesome Oscillator saw a sharp spike upward in response to ETC’s rally to $24.2. However, in recent hours, the price slipped back beneath the zero line to show rising bearish dominance. At the same time, the MACD also formed a bearish crossover and dived toward the zero line.
The A/D has been
Read more on ambcrypto.com
