Etherium Classic Analysis (ETC/USD) January 1, 2018

Ethereum Classic

Etherium Classic Analysis (ETC/USD) January 1, 2018

As mentioned before, sometimes fading a trend is like catching a falling knife. You know why? You never really know where the tops are and especially for these virtual currency which have a relatively short history but are charting new heights.

I talked about ETC over-extension and a possible correction for equilibrium purposes but this is never going to happen because our triggers are still intact. Intact? Yes, we needed sellers to continue pressing prices lower and to mark that prices need to close below the main support line at $25.

As we can see in the weekly chart, the average weekly range as shown by the size of the candlestick is even relatively low and that might be because of consolidation in lower time frames. Fact is, there is no defined trend-no clear buy or sell pressure clear in the weekly chart despite the stochastic sell signal which is rare.

Anyway, if it continue as it is, then we shall have to be patient and wait for either a nullification or a confirmation of this projection.

Notice the strong support at $25 and failure for ETC buyers to push prices past the middle BB? That is important not for bears but for bulls because for sellers to confirm a 60% price erosion, prices must close below $20.

Judging from the chart, it is obvious that trading this pair was a futile attempt because of the narrow consolidation and the failure for triggers to be pulled.

In our entry chart, there is a beautiful sine wave ETC price action is printing. It is so beautiful we can only stop and watch because if you are a trend trader, getting in will be a loss making heart sore.

$25 remains reliable while our immediate resistance line-sell zone- other than the middle BB in the daily chart at $34 has been given a wide berth.

There is a stochastic buy signal in the 4HR and the daily charts and if buyers get in the trend and push prices higher, we shall have to see how bears react at $25.

 

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