Trade Recommendation: Ethereum Classic
The Ethereum Classic/US Dollar pair (ETC/USD) started a bull run on November 27, 2017 when it took out resistance of $23. This triggered the rounding bottom pattern on the daily chart. The breakout attracted so much momentum that the pair went as high as $47.296 on January 14, 2018. In about a month and a half, ETC/USD grew by over 105%.
At this point, the target of the rounding bottom pattern was achieved. Consequently, those who bought the breakout took profits. The heavy selling drove the pair to as low as $12.966 on April 6. At this price level, ETC/USD lost over 72% of its value from the top.
With a bottom in place, the pair rallied. It went as high as $25.647 on May 6. Bears may have defended the $23 resistance as the ETC/USD pulled back. However, this can be your chance to buy the bottom.
Technical analysis show that ETC/USD is respecting support of $13. This view comes after the pair went was low as $12 on June 10 but bulls preserved the support. In addition, the support was confirmed on June 24 when the pair dropped to $13.15 and then the market bounced with good volume.
The strategy is to buy as close to $13 as possible. As long as the pair is above this level, bulls have the momentum they need to move to our target of $23.
The process may take a month.
Daily Chart of ETC/USD on Kraken
As of this writing, the ETC/USD pair is trading at $15.6 on Kraken.
Summary of Strategy
Buy: As close to $13 as possible.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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