classic Ethereum [ETC] Chances of separation: when, how and why of everything

Disclaimer: The results of the following analysis are the sole opinion of the author and should not be taken as investment advice.

After a clearly steep uptrend for a month, Ethereum Classic [ETC] We saw a relatively boring week. The resurgence in selling brought the altcoin below the 4-hour EMA 200 (green) to reveal its bearish rim.

The altcoin’s post-time breakout of the trendline support (white, dashed) could prevent the red candlesticks from streaking in the coming sessions.

At press time, the altcoin was trading at $33.67, down nearly 1.7% over the past 24 hours.

ETC 4 hour chart

Source: TradingView, ETC/USDT

ETC experienced an amazing ROI of over 200% from its mid-July lows. As a result, it hit its four-month high on August 13.

Over the past few days, ETC entered high volatility after exiting the $44 zone. This selling comeback helped the bears find a close below the 20/50/200 EMA in this time frame. Meanwhile, the 1-week trendline support (yellow, dashed) and the $32 baseline collapsed, providing ETC with a basis for recovery.

However, as the bears are aiming for a bearish crossover at the 20/200 EMA, the bulls have yet to add buying volume. The close above the 200-EMA could help the buyers to retest the 20-EMA region in the $35-$36 range.

If general sentiment continues to fuel bearish force, the altcoin would likely see a reversal in the short-term EMAs on its journey south. If buyers adamantly defend the $32 level, ETC could mark a compression phase.

fundamental reason

Source: TradingView, ETC/USDT

The Relative Strength Index (RSI) saw a solid rise from the ashes of its oversold lows. Sustained growth beyond 40 would further strengthen the prospects for a short-term recovery.

On the other hand, the CMF failed to occupy the lower lows of the price action. Hence, a bullish divergence is forming on this time frame. Also, the MACD lines were on the verge of a bullish crossover. Continued northerly movement of these lines could fuel a period of low volatility before a breakout.

Diploma

Given the decline in selling volumes combined with the potential of the indicators, ETC could see a short-term rebound before reverting back on its bearish path. The death cross on the EMAs may confirm the bearish bias. The goals would remain the same as discussed.

Finally, broader market sentiment and on-chain developments would play a crucial role in influencing future moves.

Source: ambcrypto.com

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