Like other alt coins, ETC price action is literally waving in lower time frames and that is why movement in this time frame has been slow and constrained within last week’s high lows.
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We had earlier mentioned how this week’s movement will be muted and for you to have a feel of it, notice that ETC is generally bearish but last week’s lows at around $22 has not been tested.
In fact prices reversed sharply from the main support line at $25. Now, remember we are trading inside a bullish break out trade that will only be nullified in this week’s prices surge below last week’s lows as prices sprint towards the weekly chart middle BB.
It may happen but then the stochastics are mixed after candlestick accumulation in the last couple of weeks. If they were diverging with a clear sell signal, then maybe we would have been worried.
I like the way prices are reacting at the main support line. It is hinting and shows the significance of previous resistance turned support and how ETC is in the second stage of a break out trade-the retest.
I don’t mind a couple of whipsaws with lows below $25 because what is important for us is where prices close. For trend resumption, it’s imperative that prices are maintained above the main support at $25 with the middle BB acting as our immediate resistance line.
Now, here’s the deal. Our main support is at $25 and what we need is for ETC prices to close above it if bull trend is to resume. That means in our entry chart, prices must first blast through this minor resistance line and it would be ideal if they close above January 22 highs of $33.
Any close below last week’s lows nullifies this bull projection.