Retesting Crucial ETC Support Level
🚀If ETC’s price moves as expected, expect this buying opportunity…
The $29.1 level has been acting as a strong resistance level for bulls since April 13. It wasn’t until May 20 that they were able to defeat the bears. By then, the OBV had been rising for a month and something had to give.
The hype around Ethereum also fueled the breakout momentum, which would have certainly been a positive for ETC as well. Since then, momentum has slowed down. The RSI drop to 49 is evidence of this.
Ethereum Classic has retested the $29 resistance level as support and is expected to react positively. However, some volatility on the lower timeframes could be seen on Monday.
Based on the rally in early 2024, the retracements in March and April did not break below the 78.6% level at $22.5. At press time, the 50% level at $29 is support, which means a move toward highs of $39.7 is possible in the coming weeks.
Pockets of liquidity below $29 are magnetic zones
Although a rebound is possible at the $29 level, the rebound may come after the $28.4 level. A one-month review of the liquidation level heat map shows that the $28.4 to $29 area is full of short liquidations.
Entering this area will collect liquidity here before the next rebound. Therefore, traders should use the drop to $28 as a buying opportunity based on the existing evidence.
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