While most cryptocurrencies are consistently falling and even breaching important support levels, ETC has respected its 200 days moving average by a huge margin and thus has created an uphill battle to retrace to higher levels. After the huge red candle on 21st June, all hopes were lost in this cryptocurrency, but where the prices were falling, another important indication was revising the volumes.
The volumes on ETC seem to be at all-time lows since the high volumetric transactions at the starting of May. The price action has mostly been negative when compared to its all-time high of May 2021. There are a lot of indicators, and it is important to consider some of them before clearly deriving the further outlook of ETC in the near term based on its technical data.
ETC Technical Analysis
While the prices are clearly negative, the fall of 21st June intensified the negative sentiment. Breaching the 100-day moving average was a huge blow to the investor sentiment, but it also raised the volume of exchange transactions significantly higher. ETC is currently trading quite above the 200-day moving average, and the historical trend line for support is $25.31.
The first resistance to watch would be $50.86; ETC will be facing some resistance around $48 to $51. If it manages to cross this level without a single red candle, the upside momentum would again be challenged around $80 – $85. On the contrary, the upside would be capped until ETC breached the downside parallel channel marked on the image above. RSI is also indicating some signs of retracement from the lows of $32.25. Currently, RSI shows a histogram level of 34 on charts.
ETC, despite its retracement, is not in a positive trend till it forms two back-to-back green candles on Heikin Ashi charts. While the lower wick indicates attempts to change to trend, it will only be confirmed with a green candle with higher high wicks. The rise in volumes will bring more volatility to ETC valuations. Investors should make no fresh entries below the 200-day moving average and give ETC some time to consolidate.
ETC has some good green Heikin Ashi candles on the hourly chart, which provides some good indication for fresh buying. This attempt for reversal in the month-long negative trend would bring some joyous colors after it breaches the resistance of $50. With such an upside move, the mentioned resistance lines seem achievable. It is a good time for sequential buying at current valuations, but one must not put all their money in one go, so firstly, they must check ETC price prediction to invest wisely as the price can plummet with even a small sign of weakness.