Ethereum Classic (ETC) is one of the most watched cryptos at the moment. That’s because they have an upcoming wallet release. There is also the upcoming hard fork in July, and investors are looking to make some free coins after the hard fork. So how is Ethereum classic behaving in intra-day trading?
In the last few hours, Ethereum Classic has been trading in a range. The price is oscillating between the 100-day and the 200-day moving averages. The 200-day moving average is offering support, while the 100-day moving average is acting as serious resistance.
However, the price has traded at around the resistance price level, which is an indicator that upward momentum in intra-day trading is losing steam. This also reflects in the moving averages cross where the 50-day moving average has crossed the 21-day moving average from above, which is usually a sign of a bearish trend.
Looking at volumes in intra-day trading, we can see that they are declining. That’s an indicator that the price might decline in intra-day trading, since the amounts of money flowing into Ethereum Classic is dropping.
From the moving average patterns and the volumes, it is clear that Ethereum Classic (ETC) will retrace in the next couple of hours. In coming hours, Ethereum Classic could hit around $20.9, which is the 200-day moving average. If it fails to break below this price level, this could mark a good entry point, with $23-$25 acting as the next resistance level. Alternatively, if it breaks below this price level, it could drop further to around the $20.40, a price level that has acted as support level in the past.
However, chances of a drop below $20.9 is quite implausible when you put other technical analysis indicators into perspective. For instance, the RSI is showing a reading of 46, and has been at around that level for more than 12 hours. A reading above 40 is usually an indicator of an early bull run, and in this case, the fact that it has sustained above 40 is indicative of strong demand for ETC. In essence, if the price drops, it is likely to reverse at around the historical 200-day moving average.
For anyone looking to make a short-term entry into Ethereum classic, it is best to wait it out until the market direction is confirmed. Correlating this to the fundamentals, there is a good chance that the market is waiting for the release of the Emerald wallet beta version release. Once this is released, the value of Ethereum Classic (ETC) will shoot up significantly. If there is any delays or some confusing news from the team, then this could send the price tumbling. Emerald wallet beta was supposed to be launched two days ago, but so far there is very little information online regarding the same.
In essence, it makes sense to hold up your money right now and await for the trend to get confirmed. The market could continue to trade sideways for the next 24 hours or so. Getting in now, can increase your risk level, unless you are making a long-term investment.