Hello traders! Today we will observe ETC/USDT cryptocurrency pair. Ethereum Classic is ranked #21 by Coin Market Cap. The total capitalization currently stands at $648,664,762.
Starting with a Weekly chart, where we can see a triple bottom formation near $3.5 area. In March 2019 there was a huge spike down, yet the support hasn’t been broken as weekly close remained above $3.26 key level.
Since then, ETC/USDT price has been ranging without any major moves. This has lasted for the past 6 weeks, and perhaps very soon there will be a strong move produced by ETC.
Below is the 3-hour chart, where we can see price bouncing off the $5.33 and then $5.40 support levels . Both of these levels correspond to Fibonacci retracements, 76.4% as per the weekly chart, and 38.2% Fibs applied to the most recent wave up.
At the same time, the 200 Exponential Moving Average has been acting as the resistance first. But currently, we can see a clear bounce off the EMA, which is now acting as the support. Therefore, as long as the $5 psychological support will hold, we are likely to see strong growth on ETC/USDT.
There are two upside targets. First is the 61.8% Fibs (as per the weekly chart) at $6.61. It also corresponds with the upper trendline of the ascending channel. The second target is seen at 50% Fibs, which is $7.64 (also based on the weekly chart).
On the downside, as already mention $5 support must be broken for the price to move down. In this scenario, ETC could drop towards either $4.6 or $4 area.
Bias: Strongly bullish while above 5
Potential Support Zone: 5.33 – 5.40
Potential Targets: 6.61, 7.64
Have a profitable trading!