Ethereum Classic [ETC] Price Spikes 4% In A Day, Possible Spike To $11.00 USD Or A Bull Trap?


Ethereum Classic
Source: The Merkle

Ethereum Classic [ETC] Price Spikes 4% In A Day, Possible Spike To $11.00 USD Or A Bull Trap?

  • Ethereum Classic (ETC) on the verge of breaching key resistance at $10.00 USD, as price spikes 4% in a day.
  • Higher timeframe charts MACD, RSI, Elliot Wave technical indicators signal a long term bearish view on the ETC/USD pair.

Ethereum Classic is arguably one of the top cryptocurrencies of 2020 following a successful Agatha hard fork, an appreciation to $13.00 USD on Jan. 17, and a break into the top 10 for the first time in over a year. Following the spike to yearly highs, the bears took control of the market setting the price back to sub-$10 USD levels, as major crypto exchanges price a token of ETC at $9.638 USD, as at time of writing.

ETC/USD on the verge of breaching key resistance at $11.00 USD

Since spiking to $13.00, the price reversed to $7.78 USD a week later and bounced off the rising wedge channel support, to start its journey to $10 USD. Only a few cents away, the mark looks set to be breached with near term indicators, bullish. Having touched an intraday trading high of $3.845 USD on Coinbase, ETC/USD has slowed its pace to current prices as bulls prepare for a possible bullish run in the near term.

Image: TradingView

The market is firmly poised in the upper half of the 20-day Bollinger Bands, with the upper band providing near term resistance. If bulls are able to breach the key resistance at $9.916 USD, the market will effectively threaten a move towards higher resistance levels at $10.00 USD and $10.80 USD in the coming days.

Furthermore, the upcoming halving in March is causing a decrease in the natural supply of the tokens. This provides bullish fundamental principle arguments for strongly bullish investors.

Is this a bull trap?

The past few days in the cryptocurrency field has been nothing short of confusing. Bitcoin (BTC) is yet to show any clear direction heading into the halving. ETC long term indicators are giving mixed signals as the daily MACD narrows to form a death cross. Completion of the pattern will start off a selling spree that may push the price back to the key support provided by BB middle line at $7.50 USD.

Image: TradingView

Notwithstanding, the decreasing volumes do not offer a solid bullish stance in the long term. The higher time frame relative strength index (RSI) charts show the token is slightly overbought at 71 hence a possible consolidation period may be on the way.

Author: Lujan Odera
Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.
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Lujan Odera 385 Articles
Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.
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