Record Retest? ETC Looks Poised on Double-Digit Climb

ETC, the native currency of the ethereum classic blockchain, looks set to retest record highs, having now formed a base above $30.

As of writing, ETC is changing hands at $37.90, as per data source OnChainFX. Yet, the crypto asset has appreciated 16 percent in the last 24 hours, and is up 95 percent from its Feb. 6 low. Further, ETC was restricted to a narrow range of $30-$35 in the last few days and the sharp rise seen Monday marks an upside break of the consolidation.

As for the cause, one theory is that traders are exiting bitcoin for the alternative crypto asset.

OKEx, which offers ETC/BTC pair, is the leading exchange by trading volume, meaning it’s possible investors are taking this strategy – the sharp rise in ETC/BTC (up 10.52 percent) is mainly responsible for the uptick in ETC’s US dollar exchange rate.

That said, ETC is still down at least 20 percent from the record high of $47.77 hit on Dec. 21.

However, technical charts indicate the gap between the current market price and record highs could continue to narrow in the days ahead.

ETC Daily chart

The above chart (prices as per Bitfinex) shows:

  • Previous day’s long-tailed doji and a bullish follow-through Monday signal a continuation of the rally from the Feb. 6 low of $14.00.
  • The upward sloping 5-day moving average (MA), 10-day MA and the bullish crossover between 10-day MA and 50-day MA favors further upside in ETC.
  • The relative strength index (RSI) is trending higher in support of the bulls.

The RSI on the 4-hour chart is above 50.00 (bullish territory) and well short of the overbought territory, suggesting room for a further rally in ETC.

View

  • ETC looks set to test all-time highs near $47, but may consolidate around $43.00 (Dec. 21 high) for a couple of days as the 4-hour RSI may show overbought conditions by then.
  • Technical corrections are likely to be short-lived as long as the 10-day MA is sloping upwards.
  • Only a daily close (as per UTC) below $26.25 (Feb. 9 high) would signal bullish invalidation.

ETC/BTC

  • The pair looks set to test BTC 0.0043 (38.2 percent Fibonacci retracement) and could break higher towards BTC 0.0049 (Sep. 2 high), courtesy of the rounding bottom formation.
  • A daily close (as per UTC) below BTC 0.0023 (Feb. 6 low) would signal a bullish-to-bearish trend change.

Climbing via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Comments

comments

Filed in: Bitcoin Buzz Tags: ,

You might like:

Bancor Bounce Back? ICO Is Winning Adoption Bancor Bounce Back? ICO Is Winning Adoption
Lithuania's Central Bank Probes 100 Million Euro ICO Lithuania's Central Bank Probes 100 Million Euro ICO
PC Giant Lenovo Seeks Blockchain Validation Patent PC Giant Lenovo Seeks Blockchain Validation Patent
Coinbase. Ripple. Uphold? Investor Greg Kidd Defends Bold Bet Coinbase. Ripple. Uphold? Investor Greg Kidd Defends Bold Bet
Banks Buy Stakes in Blockchain Startup SETL Banks Buy Stakes in Blockchain Startup SETL
Long Blockchain Is At Risk for Exchange Removal Again Long Blockchain Is At Risk for Exchange Removal Again
Bottom Confirmed? Bitcoin at 20-Day High Near $11K Bottom Confirmed? Bitcoin at 20-Day High Near $11K
$850 Million Raised in ICO So Far, Says Telegram $850 Million Raised in ICO So Far, Says Telegram
© 2018 Virtual Mining Bitcoin News. All rights reserved. XHTML / CSS Valid.