Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
Ethereum Classic has a bullish outlook for the next few weeks. Even on a longer timeframe, Ethereum Classic is at a place that offers a great risk-to-reward buying opportunity. The $34-$36 area presents an area of demand, one which has been an area of resistance since December.
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The price shot past this area in late March. At the time of writing, it had revisited this area in search of demand.
Ethereum Classic – 12 Hour Chart
Based on the move from $26.52 to $52.7, a set of Fibonacci retracement levels was plotted (yellow). The 61.8% retracement level lies at $36.52. The entire area from 61.8%-78.6% is technically a buying opportunity as strong moves retrace to certain percentages before a resumption of the former trend.
Moreover, going back to mid-December, the $35-$36.5 zone has been an area of resistance. At the time of writing, the price had retested this area and found some demand. Going forward, a move upward can be initiated from the $36-area.
For long-term investors, so long as the price doesn’t dip below $32.12, a buying opportunity can still present itself. $36.52, $33.52, and $32.12 are levels that can be expected to act as support, should ETC see a further dip.
On the 12-hour chart, the RSI flashed a regular bullish divergence just as the price tested a zone of demand. Hence, a bounce in price could be imminent. On the other hand, the DMI pictured a strong bearish trend in progress. The ADX (yellow) and -DI (red) were both above 20.
The OBV has been on a downtrend as the price pulled back, however, the buying volume when the price broke out past $36 was quite high. If the OBV can continue to climb higher, alongside the price, it would be an indication of a genuine upward move.
The price had retraced to a zone of demand at $36, and a bullish divergence was spotted. A retest of this zone in the next few days can be a buying opportunity. Similarly, a move above $38.65 and its retest as support can also be a buying opportunity.
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