Ethereum Classic – Expect this buying opportunity from ETC’s price IF…

  • Fibonacci levels and OBV supported the idea of ​​a bullish ETC
  • A pocket of liquidity below a key support level could draw prices there

Ethereum Classic (ETC) saw a strong breakout past the $29 resistance level on May 20. The ensuing hype around the approval of Ethereum spot (ETH) exchange-traded funds (ETFs) also benefited Ethereum Classic. That’s not all either since the network experienced its fourth halving on May 31.

The last ten days have seen some volatility around the $32 level, but ETC has lost 8% of its value in just five days. So, the question: is its next price move on, or was it a healthy pullback before another move higher?

Re-testing a vital ETC support level

Ethereum Classic 1-Day Trading ViewEthereum Classic 1-Day Trading View

Source: ETC/USDT on TradingView

Since April 13, the $29.1 level has been a severe resistance level for the bulls. They were unable to defeat the bears until May 20. At that point, OBV had been up for a month and something had to give.

The breakout strength was also aided by the hype around Ethereum, which invariably has a positive effect on ETC. Since then, the dynamic has slowed down. This resulted in the RSI falling to 49.

Ethereum Classic retested the old resistance level of $29 as support and is expected to react positively. However, some temporal volatility could develop on Monday.

Based on the early 2024 rally, the March and April retracement did not fall below the 78.6% level at $22.5. At press time, the 50% level at $29 was support, suggesting a move toward its high of $39.7 could follow in the coming weeks.

Liquidity pocket below $29 as magnet zone

Ethereum Classic Liquidation LevelsEthereum Classic Liquidation Levels

Source: Hyblock

Although the $29 level would likely see a rebound, this could come after a sweep of the $28.4 level. The heatmap of one-month liquidation levels revealed that the $28.4 to $29 area was filled with short liquidations.

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A passage through this area would make it possible to collect the liquidity present here before the next rally. Therefore, traders should use a decline towards $28 as a buying opportunity based on the available evidence.

Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.

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Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe. Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
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