Ethereum Classic is on a strong uptrend, but these lows could be revisited
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
Why has Ethereum Classic seen a wild surge in prices in the past week and a half? It could be down to many factors. One of them was the anticipation of the “fifthening” on 15 April 2022, when block rewards are reduced by a fifth (20%). There is also the narrative that Ethereum’s move to Proof-of-Stake drives miners to ETC, but since there has beenno large increase in mining difficulty on the network, this narrative might not hold much water.
Source: ETC/USDT on TradingView
Ethereum Classic has been strongly bullish in the past ten days and has registered a nearly 75% gain. Longer timeframe charts showed that ETC has broken past key levels of resistance at $38, $41, and $44 within a span of a few days.
Was this surprising? Hindsight is 20/20 so “no” is a dishonest answer. However, analysis of the 4-hour timeframe showed that the market had broken its long-term bearish market structure in early February after scaling past the local highs at $34. Since then, the price found support at $23.5 and has rallied hard.
In the next few days, the higher lows at $42.12 and $35.06 can be areas to buy ETC at. However, a session close below $42 will likely see ETC drop toward $35, and will mean that the short-term bias has flipped to bearish.
Source: ETC/USDT on TradingView
Was ETC bearish yet? No. However, the RSI was below neutral 50, while the MACD formed a bearish crossover and dived below the zero line. This signaled a possible short-term downtrend/pullback in store for ETC.
The OBV has been trending higher in the past week, as expected. However, alongside the momentum, the OBV has also fallen slightly in
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