Ethereum Classic saw continued retracements until hitting the 11-month support floor near the $24-mark. However, bulls launched a stable recovery after that. Now, as the Point of Control and 20 Exponential Moving Average pose as bulls’ impediments, the altcoin appeared prepared for a squeeze period before initiating trend-altering movements.
Meanwhile, bulls should hold the support at $26 to prevent declines towards the $25 value area. While publishing this content, Ethereum Classic traded at $26.47.
Ethereum Classic 4Hr Chart
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The alternative coin lost the critical $30-level following sideways actions in most of last year’s sessions. That had bears flipping the level into a resistance. Meanwhile, ETC lost more than 45% since December 27, dipping towards 9-month lows on January 22.
ETCH registered decent upsurges since the January lows, witnessing bullish trend-line support. Though the alt recorded higher troughs, bears dominated the peaks. Therefore, squeezing Ethereum Classic in a proportioned triangle-like setup. Bears dominated within no time after the latest downward channel breakout, keeping the alt beneath its EMA Ribbons.
A confluence of many resistance zones makes ETC’s recovery road burdensome. However, a close beyond the trend-line resistance might propel the alt to retest the $27 value area. Also, the current candle closing in the green will confirm a potential morning star candle setup.
However, the current momentum shows Ethereum Classic may likely keep the low volatility period and hit the trend-line support. Bulls should secure a close beyond the POC to turn the narrative into their side.
The Relative Strength Index wared beneath the midline and highlighted a bearish trend. The past three days had the indicator forming a plunging triangle on the 4hr chart. That echoed the increased selling influence. Moreover, the Chaikin Money Flow remained southbound, confirming declining money flows. Also, the ADA revealed weak direction bias while exhibiting downtrends.
For now, investors need to wait for a bullish morning star candle confirmation. The POC remains a critical value area in the upcoming days. Meanwhile, a close beneath this mark would see Ethereum Classic retesting its support level before dipping into a massive volatile phase. Moreover, on-chain developments and broad market sentiment would be vital in the token’s future trends.
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