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Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation
Why has Ethereum Traditional seen a wild surge in costs prior to now week and a half? It may very well be right down to many components. Certainly one of them was the anticipation of the “fifthening” on 15 April 2022, when block rewards are decreased by a fifth (20%). There may be additionally the narrative that Ethereum’s transfer to Proof-of-Stake drives miners to ETC, however since there was no large increase in mining difficulty on the community, this narrative may not maintain a lot water.
Ethereum Traditional (ETC)
Supply: ETC/USDT on TradingView
Ethereum Traditional has been strongly bullish prior to now ten days and has registered a virtually 75% achieve. Longer timeframe charts confirmed that ETC has damaged previous key ranges of resistance at $38, $41, and $44 inside a span of some days.
Was this stunning? Hindsight is 20/20 so “no” is a dishonest reply. Nonetheless, evaluation of the 4-hour timeframe confirmed that the market had damaged its long-term bearish market construction in early February after scaling previous the native highs at $34. Since then, the worth discovered help at $23.5 and has rallied arduous.
Within the subsequent few days, the upper lows at $42.12 and $35.06 could be areas to purchase ETC at. Nonetheless, a session shut under $42 will seemingly see ETC drop towards $35, and can imply that the short-term bias has flipped to bearish.
Rationale
Supply: ETC/USDT on TradingView
Was ETC bearish but? No. Nonetheless, the RSI was under impartial 50, whereas the MACD shaped a bearish crossover and dived under the zero line. This signaled a potential short-term downtrend/pullback in retailer for ETC.
The OBV has been trending greater prior to now week, as anticipated. Nonetheless, alongside the momentum, the OBV has additionally fallen barely prior to now couple of days.
Conclusion
The market construction, near-term and longer-term, was bullish. Within the subsequent few hours, a session shut under $42.12 might see ETC pull again towards $38.6 and $35.06. There was some promoting prior to now couple of days however it hasn’t damaged the uptrend but. The lengthy candlewick to the upside prior to now few hours may very well be a warning signal to the late consumers.
