Don't Fret Yet, My Pet! Ethereum Classic! (ETC)
Yo, yoooo! What's up everyone? Welcome to this update analysis on Ethereum Classic! Let's jump right in. Looking at the four hour chart, you can see that after riding the black rising trendline, ETC broke below on it the 21st, and hasn't been able to get back above since. It traded all the way down to the 200 EMA (in purple) where it found support, and then rallied back up, into the bottom of the rising black trendline, where it confirmed resistance. You can see that ETC has now rolled over, and it has broken below the 50 EMA (in orange.) Right now, it's sitting right on top of support from the high of 1/28. This is a pretty substantial support level, so if it falls, the next stop will be the 38.2% retrace, and then the 200 EMA (in purple.)
However, what we're really watching, is the development of this head and shoulders pattern. We're watching to see if ETC will move down, and complete the right shoulder. A breakdown from the neckline could produce some nice bearish trading opportunities. Speaking of the neckline, you can see that it has a downward tilt, which makes this pattern particularly bearish. So, a breakdown could produce some rapid selling. Furthermore, the rise on the left side of the chart was relatively rapid, which suggests that an equally swift decline could ensue on the downside.
With that said, Bitcoin continues to move the market. It's trying to bounce off of critical support right now, but if it fails, you can expect further downside in ETC and the rest of the crypto space. If you're a bull, don't fret yet, my pet. All is not lost. If BTC recovers, we could see a move higher in ETC, which would negate the head and shoulders pattern if it surpasses the head. For now, you can use the 50 EMA as a barometer for direction. A break back above the 50 is bullish. If we stay below it, look for a completion of the pattern to materialize.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
However, what we're really watching, is the development of this head and shoulders pattern. We're watching to see if ETC will move down, and complete the right shoulder. A breakdown from the neckline could produce some nice bearish trading opportunities. Speaking of the neckline, you can see that it has a downward tilt, which makes this pattern particularly bearish. So, a breakdown could produce some rapid selling. Furthermore, the rise on the left side of the chart was relatively rapid, which suggests that an equally swift decline could ensue on the downside.
With that said, Bitcoin continues to move the market. It's trying to bounce off of critical support right now, but if it fails, you can expect further downside in ETC and the rest of the crypto space. If you're a bull, don't fret yet, my pet. All is not lost. If BTC recovers, we could see a move higher in ETC, which would negate the head and shoulders pattern if it surpasses the head. For now, you can use the 50 EMA as a barometer for direction. A break back above the 50 is bullish. If we stay below it, look for a completion of the pattern to materialize.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
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