Chart Analysis: ETC/USDT Monthly Chart
Overview
The chart examines the macro-level movement of Ethereum Classic (ETC). The resistance of the long-term downtrend is being tested, with the potential for an upward breakout. The price appears to be stuck between the support and resistance levels in this region.
Target and Prices
1. Short-Term Goals:
• $30-35: After the breakout, the price is expected to reach the first resistance zone.
• $50: Key level that the price will test in the medium term.
2. Long-Term Goals:
• $65 to $115: Points where price may target breakout above key resistance levels.
• $145: Long-term target above major resistance zone.
Support and Resistance Levels
1. Support Levels:
• $17-20: Long-term strong support level.
• $25: Current price level, potential reversal point.
2. Resistance Levels:
• $30 - $35: Breakout zone of downtrend.
• $50: Mid-term major resistance.
• $65 and above: Resistance zones on a large scale.
Indicators
1. Fibonacci Levels:
• Fibonacci levels are used in the chart. If the 0.382% level is broken, the price is expected to move towards the 0.5% and 0.618% levels.
Volume 2:
• Volume on the monthly time frame is important to determine whether the uptrend will continue. There is currently an increasing trend in volume.
Formations and Formation Reversals
1. Falling Trend:
• It is at the breaking point of the long-term downward trend.
• There is a high probability that the price will make a strong upward move after the breakout.
2. Consolidation:
• The price has been in the squeeze zone for a while and is preparing for a potential move upwards.
Trend Direction
1. Short Term:
• In a slight uptrend. However, a strong trend reversal cannot be confirmed until the resistance is broken.
2. Long Term:
• If the resistance zones are broken, the long-term uptrend can be confirmed.
Strategic
1. Purchase Strategy:
• Purchases can be considered at the current support area of $25.
• A new position can be opened on a break above $30.
2. Stop-Loss Levels:
• Stop-loss can be used in case of closing below $20.
3. Profit Taking:
• First take profit target is between $35 - $50.
• In the medium term, levels of $65 and above can be targeted.
4. Risk Management:
• Caution should be exercised when trading in markets with low volume and high volatility.
Comment
The chart shows Ethereum Classic trading close to the downtrend resistance and the potential for an upside breakout. Traders are advised to plan to buy at support levels and take profits at resistance levels and apply risk management. If the price breaks the $35 level, targets of $50 and above are reasonably expected.
