Ethereum Classic Technical Analysis (April 8): Liftoff After Resistance Level has been Broken

Ethereum Classic (ETC) is currently trading at $7.32. Looking at the chart below we see that the resistance around $5.4 has been broken and the price is moving upwards with formation of a Bullish engulfing pattern.

The current support is at around $5.9, while for the resistance we currently see two hurdles, one minor resistance is at around $7.4 and one major resistance at around $9.

Dow Theory

According to Dow Theory, the cryptocurrency is currently appearing in accumulation phase which is area from where the price shoots up, and is generally considered great buying point, this is the time when the informed investors (experienced traders and institutions) are usually entering their positions. The price moves during the accumulation phase are slow. The accumulation phase often falls into the end of a downtrend.

Bollinger Bands

The ETC price is moving between the channels, the upper limit is acting as resistance and the middle moving average line is acting as support. Recently the price has broken the upper limit and the Bollinger band is expanding, which is a great indication for an upward or downward movements. The expansion of Bollinger band with positive momentum gives indication for an upward rally; so it can be considered as a buying signal.

Moving Average

Taking 9 period moving averages (blue) with 21 period moving averages (red), a Bullish crossover is seen. With the price moving above 21 period moving average and below 9 period moving average, the crossover was seen 2 weeks ago; also the volume is above 10 period moving average. Long positions can accordingly be taken.

Conclusion

The price has broken the resistance level of $5.4 with the next resistance levels at around $7.4 and $9. The price is currently in the accumulation phase and is moving towards the public participation phase. Long position can be taken; but, while being cautious when the price is trading around the $7.4 level, if the price falls back it can be used for swing trading, while if continues to go up, $9 should be the target.

Moving average gave the buying signal 15 days ago with a bullish crossover and is still giving buying signals. The Bollinger band is also indicating an upward rally. The digital coin looks positive for long term growth, while can also be used for swing trading given the above price levels.

Pivot Points

Name S3 S2 S1 Pivot Points R1 R2 R3
Classic 3.7494 4.2515 5.1158 5.6179 6.4822 6.9843 7.8487
Fibonacci 4.2515 4.7734 5.0959 5.6179 6.1399 6.4624 6.9843
Camarilla 5.6042 5.7295 5.8547 5.6179 6.1053 6.2305 6.3558
Woodie’s 3.9304 4.3420 5.2968 5.7084 6.6632 7.0748 8.0297

Technical Indicators

Name Value Action
RSI(14) 51.074 Neutral
STOCH(9,6) 44.528 Sell
STOCHRSI(14) 100.000 Overbought
MACD(12,26) -1.334 Sell
ADX(14) 41.280 Buy
Williams %R -10.517 Overbought
CCI(14) 306.6610 Overbought
ATR(14) 0.6969 Less Volatility
Highs/Lows(14) 1.7470 Buy
Ultimate Oscillator 59.285 Buy
ROC 32.460 Buy
Bull/Bear Power(13) 2.6380 Buy