Ethereum Classic: How to gauge ETC’s ability to continue its rally

ambcrypto.com:

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

Over the last few weeks, Ethereum Classic’s [ETC] gradual growth plateaued in the $38-$39 range. This range has flipped itself to exhibit tendencies of a supply zone, especially after the most recent rejection of higher prices.

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

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

Source: TradingView, ETC/USDT

ETC marked an atypical ROI of over 240% as the bulls clinched in a staggering rally from 13 July toward the alt’s four-month high on 29 July. This buying comeback helped the bulls find a well-needed close above the EMA ribbons.

Over the last few days, ETC entered a compression phase near the Point of Control (POC, red) in the $36-zone. Meanwhile, the three-week trendline support, POC, and the 20 EMA, coincided in offering rebounding grounds for ETC.

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

The rebound from the 20 EMA can aid buyers in retesting immediate resistance before a potential bullish volatile break. In this case, the potential target would lie in the $40-$41 range.

Should the broader sentiment deteriorate the bullish vigor, a close below the trendline support could delay the near-term recovery prospects. The buyers would aim to continue their spree from the $33 baseline.

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