![Can Ethereum Classic’s [ETC] breakout trigger a rally or is it a bull trap](https://tipsbtc.com/wp-content/uploads/2022/06/PP-3-cover-1-1000x600.jpg)
Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the opinion of the author.
International inventory market indices have been in a freefall over the previous two weeks. Bitcoin has additionally seen extreme losses over the identical time interval, measuring near a 35% drop. Given this backdrop, the altcoin market has additionally quickly shed worth. Ethereum Classic noticed a near-term bullish market construction break. But, this is able to probably not be sufficient to reverse the robust downtrend for the altcoin.
ETC- 4-Hour Chart
Supply: ETC/USDT on TradingView
On the H4 chart, it may be seen that the worth has set a collection of decrease highs since late Might. What will not be proven on the charts is that this downtrend stretches again to early April.
On the time of writing, there have been two zones of nonetheless resistance for ETC. The higher one was $18, and the decrease one at $14.8, each demarcated by pink containers. Furthermore, the 38.2% Fibonacci retracement degree added confluence to the $18 resistance zone.
ETC broke previous the $15.3 degree prior to now couple of days of buying and selling. This flipped the near-term market construction to bullish. The $13.89 assist additionally appeared to have been defended.
But, the upper timeframe bias stays strongly bearish. Subsequently, a shorting alternative might quickly current itself.
ETC- 1 Hour Chart
Supply: ETC/USDT on TradingView
The H1 chart highlighted the bullish construction flip, however the $16.15 degree has not but been crushed. In reality, the sweep of this degree the day prior to this earlier than a transfer decrease instructed that the pattern was firmly bearish.
Therefore, The whole area from $14.6 to $16.1 can be utilized to enter a brief place. Bearish divergence on a timeframe increased than the H1 might provide a extra exact entry.
Supply: ETC/USDT on TradingView
The RSI on the hourly was preventing with the impartial 50 mark. Even when the hourly RSI climbs increased, it will not recommend a pattern reversal. The OBV noticed a spike increased on the day prior to this of buying and selling, whereas the CMF climbed to -0.04.
Taken collectively, it instructed the presence of some shopping for stress. But, it wasn’t overwhelming stress, and won’t imply a pattern reversal to the bullish facet.
Conclusion
The upper timeframe bias stays bearish, regardless of the bullish break on the decrease timeframes. The $16.15 degree stays unbroken, and the $14.8 can also be a zone of resistance.
Subsequently, a brief place will be scaled into between the $14.8 and $16.1 ranges, with a stop-loss simply above $16.3. To the south, the 23.6% Fibonacci extension degree at $10.13 may very well be a bearish goal.
