Ethereum Classic traders use a variety of tools to try and determine the direction in which the ETC market is likely to move next. These tools can be roughly divided into indicators and chart patterns. When attempting to predict the price of Ethereum Classic, traders also attempt to identify key support and resistance levels, which can provide an indication of when a downtrend is likely to slow down and when an uptrend is likely to stall.
Ethereum Classic price prediction indicators
Moving averages are among the most popular price prediction tools for Ethereum Classic. As the name suggests, a moving average provides the average closing price for ETC over a selected time period divided into multiple periods of equal length. For example, a 12-day simple moving average for ETC is a sum of ETC’s closing prices over the last 12 days, then divided by 12.
In addition to the simple moving average (SMA), traders also use another type of moving average called the exponential moving average (EMA). The EMA gives more weight to newer prices and therefore reacts more quickly to recent price movements.
50-day, 100-day, and 200-day moving averages are among the most commonly used indicators in the crypto market to identify key resistance and support levels. When the ETC price moves above either of these averages, it is widely seen as a bullish sign for Ethereum Classic. Conversely, a drop below a key moving average is usually a sign of weakness in the ETC market.
Traders also like to use the RSI and Fibonacci retracement level indicators to try to determine the future direction of the ETC price.
How to read Ethereum Classic charts and forecast price movements?
Most traders use candlestick charts as they provide more information than a simple line chart. Traders can view candlesticks depicting Ethereum Classic price action at different levels of granularity – for example, you can select a 5-minute candlestick chart for extremely short-term price action, or a weekly candlestick chart to identify long-term trends. 1 hour, 4 hour and 1 day candlestick charts are among the most popular.
Let’s take a 1-hour candlestick chart as an example of how this type of price chart gives us information about open and close prices. The chart is divided into “candlesticks” that give us information about Ethereum Classic price action in 1-hour blocks. Each candlestick shows the open price, the close price of ETC, and the highest and lowest prices that Ethereum Classic reached within the 1-hour timeframe.
It is also important to pay attention to the color of the candle – a green candle means that the closing price was higher than the opening price, while a red candle says the opposite. Some charts use hollow and filled candle bodies instead of colors to represent the same thing.
What affects the price of Ethereum Classic?
As with any other asset, Ethereum Classic’s price movement is driven by supply and demand. This dynamic can be influenced by fundamental events such as block reward halvings, hard forks or new protocol updates. Regulations, corporate and government adoption, cryptocurrency exchange hacks, and other real-world events can also affect the price of ETC. The Ethereum Classic market cap can change significantly in a short period of time.
When trying to create an Ethereum Classic forecast, many traders also try to monitor the activity of ETC “whales”, which are companies and individuals that control large amounts of ETC. Since the Ethereum Classic market is relatively small compared to traditional markets, single-handedly, “whales” can have a huge impact on Ethereum Classic price movements.
Bullish and bearish price prediction patterns
Some traders try to identify candlestick patterns when making a cryptocurrency price prediction to gain an edge over the competition. Some candlestick formations are likely to forecast bullish price action, while others are considered bearish.
Here are some of the most followed bullish candlestick patterns:
Here are some common bearish candlestick patterns:
- hammer
- Bullish engulfing
- piercing line
- morning star
- Three white soldiers
- Bearish Harami
- Dark cloud cover
- evening star
- shooting star
- hanging man
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