Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the opinion of the author.
International inventory market indices have been in a freefall over the previous two weeks. Bitcoin has additionally seen extreme losses over the identical time interval, measuring near a 35% drop. Given this backdrop, the altcoin market has additionally quickly shed worth. Ethereum Traditional noticed a near-term bullish market construction break. But, this may seemingly not be sufficient to reverse the sturdy downtrend for the altcoin.
ETC- 4-Hour Chart
Supply: ETC/USDT on TradingView
On the H4 chart, it may be seen that the worth has set a collection of decrease highs since late Could. What shouldn’t be proven on the charts is that this downtrend stretches again to early April.
On the time of writing, there have been two zones of nonetheless resistance for ETC. The higher one was $18, and the decrease one at $14.8, each demarcated by pink bins. Furthermore, the 38.2% Fibonacci retracement degree added confluence to the $18 resistance zone.
ETC broke previous the $15.3 degree previously couple of days of buying and selling. This flipped the near-term market construction to bullish. The $13.89 help additionally regarded to have been defended.
But, the upper timeframe bias stays strongly bearish. Subsequently, a shorting alternative may quickly current itself.
ETC- 1 Hour Chart
Supply: ETC/USDT on TradingView
The H1 chart highlighted the bullish construction flip, however the $16.15 degree has not but been overwhelmed. The truth is, the sweep of this degree the day past earlier than a transfer decrease prompt that the development was firmly bearish.
Therefore, The complete area from $14.6 to $16.1 can be utilized to enter a brief place. Bearish divergence on a timeframe greater than the H1 may supply a extra exact entry.
Supply: ETC/USDT on TradingView
The RSI on the hourly was preventing with the impartial 50 mark. Even when the hourly RSI climbs greater, it will not counsel a development reversal. The OBV noticed a spike greater on the day past of buying and selling, whereas the CMF climbed to -0.04.
Taken collectively, it prompt the presence of some shopping for stress. But, it wasn’t overwhelming stress, and won’t imply a development reversal to the bullish facet.
Conclusion
The upper timeframe bias stays bearish, regardless of the bullish break on the decrease timeframes. The $16.15 degree stays unbroken, and the $14.8 can be a zone of resistance.
Subsequently, a brief place might be scaled into between the $14.8 and $16.1 ranges, with a stop-loss simply above $16.3. To the south, the 23.6% Fibonacci extension degree at $10.13 might be a bearish goal.
