Disclaimer: The findings of the following article are the sole opinion of the writer and should not be considered investment advice.
Looking at a longer time frame for Ethereum Classic, it can be seen that the $28.6 region is the area from where the price has been rising since mid-April. At the beginning of May, Ethereum Classic peaked at 179. dollars. Since then, Ethereum Classic has been on a steady downtrend.
On the hourly chart, Ethereum Classic is still trading in a bearish structure but there is some bullish momentum behind it. Can it break the supply zone at $30?
Source: ETC/USDT on TradingView
The resistance trendline (white) is the level of resistance that price has followed since mid-November. Each of these tests of resistance has been followed by a strong rejection in the following days.
The Visible Range Volume Configuration shows that the price is trading just below the Value Levels in the Value Area. This suggests that based on volume configuration, long positions can be considered. However, the market structure remains bearish as the most recent highs have not been broken (marked horizontally).
Furthermore, just above the recent highs of the past few days is an area where sellers have been very strong lately. Unless price can flip this area from supply to demand, the short-term bullish momentum could see a sharp reversal.
Theoretical basis
Source: ETC/USDT on TradingView
The RSI has crossed the neutral 50 level and shows bullish momentum is building up. The hourly chart RSI also rebounded above the 60 mark, something it has failed to do for more than a week.
The Directional Movement Index shows a strong uptrend in progress as both ADX (yellow) and +DI (green) are above 20 and rising.
Inference
The indicators recorded upward momentum, while the price also entered the Low Value Zone. While the general rule is to look for the long term in this area, the short term market structure remains bearish. ETC will have to climb above $30 and shift it from supply to demand before it can present a buying opportunity.
There is also a longer term resistance line to beat. However, in the event that it happens, the entire $31.5 to $34.6 area (Control Point) could be quickly taken back by the bulls as there hasn’t been much volume there during the days. recent to impede the progress of the price.