classic Ethereum [ETC] The short-term uptrend could be extended if…

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

After a relatively dull week, sellers moderated buying efforts by withdrawing Ethereum Classic [ETC] towards the baseline of $31. But the resurgence in buying pushed the altcoin above the 20/50/200 four-hour EMA to reveal a slight upside advantage.

The altcoin’s reversal from $37.4 has diminished the recent streak of green candles. The alt could run into a possible squeeze before going into high volatility. At press time, the altcoin was trading at $36.31, down nearly 2.49% over the past 24 hours.

ETC 4 hour chart

Source: TradingView, ETC/USDT

ETC lost nearly a third of its value after reversing from the $44 ceiling in mid-August. As a result, it reached its low for the month on August 22nd.

Over the past few days, ETC entered high volatility after bouncing out of the $31 zone. This buying comeback helped the bears find a close below the 20/50/200 EMA in this timeframe. Meanwhile, the gap between the 20 EMA (red) and the 50 EMA (cyan) narrowed to reflect the growing buying advantage.

The altcoin could find immediate support near these EMAs in the coming sessions. In this case, the potential targets would be in the $37-$39 range. A bullish cross of the 20/50 EMA would further increase the chances of a extensive bullfight.

If broader sentiment reignites the bearish force, the altcoin would likely see a retest of the $34 region before a rebound. If sellers insist on defending the $37 level, ETC could see a compression phase.

fundamental reason

Source: TradingView, ETC/USDT

The Relative Strength Index (RSI) had a slight buying advantage as it moved above breakeven. Sustained growth above the 50 level would reinforce the prospects for a short-term recovery.

On the other hand, the lower Chaikin Money Flow (CMF) channels bullishly diverged with the price action. Additionally, the MACD lines swung above the zero level to reveal a strong bullish edge. Any bearish crossing of these lines could indicate a near-term slowdown.

Diploma

Given the 20/50 EMA’s potential to provide immediate support coupled with strong indicator readings, the ETC-bulls would look to continue the ongoing uptrend. But the inability to stage a bullish crossover at the 20/50 EMA could delay recovery prospects. 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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