Ethereum Classic (ETC/USD) January 17, 2018
ETC prices are at optimum levels. They are not over-stretched neither are they under-valued. Look, after a break-out above $25 in early December 2017, we saw this nice explosion to $40, a correction back to support-which is normal for break out patterns and then the current trend continuation phase.
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This is exciting for bulls and all that is needed is for buyers to keep prices above $41 and if they can clear $65 the better. After all, this is possible and ETC is a deflation token with max supply just like BTC. It looks likely that this token might appreciate in the long term from my perspective.
Notice that even though prices are not moving unilaterally-check out last week’s long lower wick- at least they are moving up and most importantly, aligning themselves along the upper BB.
Taking cue from Fibonacci extension lines, our short term aim is $65 but there is more room for the upside and that can mean $89 if there is a more bull pressure assertion. Regardless, our support must lie at $41-assuming buyers take charge with $25 an outlier price tag.
In the daily chart, we keep our eyes open and notice that we are dangling right at the double tops. Yesterday, prices continue to swing up and down with highs of about $46 but ended up closing as a bear.
I must say, I will only recommend buys if and only if prices close above $50. Otherwise, give the set-up, a correction towards the middle BB and $30 is right on the cards. If there is a further depreciation, $25 will be our final floor.
A single glance at this chart shows that price was in consolidation and ranging within $8 before that nice break out late last week.
As usual with break out strategies, a possible pullback to previous resistance-now support is nothing new and as such we expect support somewhere at around current prices. I will use the Fibonacci retracement tool for that purpose and when we paste it between last week’s high low, we notice that prices are reacting at the all-important 61.8% Fibonacci level.
If the current candlestick react and close as a bull then a double bar reversal pattern would be formed. However, we only pull buys when prices are above $40 which is the 38.2% Fibonacci level.