There is a general wholesale drop in alt coin prices and from all markers placed on this pair, sellers are definitely in charge. It’s a relieve though, ETC depreciation wasn’t as rapid as other alt coins and before the main support line at $25 was broken, it was retested in a couple of times in lower time frames before last week’s break below.
As it is, sell pressure was so strong, the pent up breached two levels and this officially means traders should be looking for potential sell opportunities in lower time frames.
However, we should note one thing. Despite the strong sell pressure, it is imperative for ETC prices to be maintained below the middle BB as it is the only sure gauge of measuring momentum which anyways is strong if we refer to the secondary stochastics chart.
Besides there is a huge bear divergence pattern meaning every high is a selling opportunity. Sellers should aim at $9.33 which is October 2017 lows.
In the daily chart, the surge past $25 can be compared to a slice through butter. Bear momentum is so strong and observing price action and lower BB, candlesticks are banding along it which again is supportive of sell pressure.
In my opinion, sellers might have to fine tune their entries in the 4HR chart and sell at every high. Of course, typically a retracement back to the break out line is ideal but it appears remote as it is.
From the charts we can see that prices broke below key support at $25 and is now trading $10 below it. It’s a break out trade and we have to treat it as such and play by the break-out strategy guidelines.
The depreciation has been strong and I’m not recommending shorts now but instead a recovery back to previous support as marked at around $20-$22 or the middle is ideal if we are to short.