Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation
Ethereum Traditional was buying and selling at $49.25 on the time of writing. It has made huge bullish strides prior to now few days because it smashed its well beyond a number of ranges of resistance. Can Ethereum Traditional flip the $50 space to demand? If it does, a run to $57 and $60 can materialize. A rejection on the resistance degree was much less probably, however it may see ETC revisit the $45 space.
ETC- 1H
Supply: ETC/USDT on TradingView
Within the $50-$52 space lies a zone of provide that ETC beforehand traded at in mid-November. The truth that the asset has climbed this far within the months since was encouraging for the bulls.
The $50 is each a long-term horizontal in addition to a psychological resistance degree. For the reason that time ETC broke above the $27 degree two weeks in the past, it has recognized solely upside with minor pullbacks. On the hourly timeframe, the value appeared to wrestle to push previous the $50 degree.
In reality, prior to now 48 hours, the value has been in a compression, the place it registered each decrease highs and better lows. This was indicative of imminent and important volatility.
Rationale
Supply: ETC/USDT on TradingView
The RSI dipped beneath impartial 50 however has not but dropped beneath 40. This meant bearish momentum had not but change into dominant. The OBV has been rising whilst the value compressed. This steered that ETC may dip towards $46-$47 to hunt for liquidity earlier than roaring again northward.
The CVD has been inexperienced for almost all of final week, however on the day before today, it didn’t lean strongly in favor of both the consumers or the sellers. This was additional proof of the compression on the value charts in current hours.
Conclusion
The OBV confirmed regular and excessive shopping for quantity and the value was in a part of consolidation earlier than the enlargement. All this was taking place proper beneath a extremely important resistance degree. This confirmed that, within the subsequent few days, ETC may see a dip towards $46 however was additionally more likely to burst previous $50.
