While Ethereum (ETH) finds itself displaying fairly constructive technical characteristics trading within a triangle hovering at its 200 day moving average (red line), while also trading above its 50DMA (blue line), both such attributes resonate a decent technical posture as we can observe below.
Despite the present action in ETH that suggests a somewhat favorable technical position, Ethereum Classic (ETC) on the other hand, portrays an entirely opposite picture from a technical perspective.
One may be wondering, why such disparity between the two?
While we don’t possess the answer to the question above, as technician’s, we can only work with the evidence provided and in the case of ETC, we can see from the chart below that the action in ETC differs entirely from that of its brethren ETH, in spades.
As we can observe from above, ETC currently trades beneath all of its important moving averages (20/50 & 200DMA’s) depicting and unfavorable technical posture.
We can also see that after attempting to recapture its 200DMA (red line) earlier this month only to surrender such position within two (2) trading days in a sharp; rapid manner, ETC now finds itself building-out a potential bear flag observed in the shaded box.
While the potential bear flag set-up remains in the development stage, both investors/traders may want to pay particular attention to the action in ETC in the days/weeks forthcoming for additional clues as to whether such pattern materializes in its entirety.
Thus, present conditions continue to weigh heavily on ETC as it’s a negative that Ethereum Classic currently trades below it 20; 50 and 200 day moving averages. Furthermore, it’s also not encouraging that ETC finds itself in the process of a potential bear flag that should such pattern materialize and break southbound, the move would inflict considerable additional technical damage.
While it certainly appears that all of the evidence, from a technical perspective, continues to suggest unfavorable conditions persisting for ETC, there are but a couple of caveats that may turn the tide.
At present, despite the ominous technical posture, ETC presently finds itself at potential support from November of last year as well as both February and March of this year (albeit minor support). In addition, should its brethren ETH pop up-and-out of its triangle pattern and head for greener pastures, ETC may just find a lifeline and be able to follow behind and as a result, avoid further potential downside and ride the coattails of ETH.
Nonetheless, moving forward, let’s take a look at the following levels that may provide both investors/traders clues with respect to direction.
If, at any time in the days/weeks ahead ETC is capable of clearing the 19.75 and perhaps, more importantly, the round 20 figure, such development, should it materialize, would surely go a long way in alleviating the heavy pressure currently weighing on ETC. With respect to potential short-term support, both investors/traders may want to consider monitoring the 16.30 level as well as the 15.45 area to lend potential support.
Needless to say, ETC remains in a vulnerable technical position and while it has yet to break-down, thus far, the action requires close attention from a short-term point of view.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Ethereum Classic via Flickr
Charts courtesy of tradingview.com
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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
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XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata
Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //
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He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”
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