Trade Recommendation: Ethereum Classic
We’ve been bullish on Ethereum Classic (ETC/USD) since it breached resistance of $17.00 on July 5, 2018. While the pair did drop to $10.10 on August 14, ETC managed to bounce as soon as it hit the new support. The price action generated a bullish pin bar, which is a good sign that the market has bottomed out.
The successful retest of the new support encouraged more bulls to enter the buying scene. On August 16, the market printed volume that’s over 130% of its daily average. This enabled Ethereum Classic to surge to $14.90. While the market has been correcting since, this can be your chance to buy before ETC/USD rallies.
Technical analysis shows that Ethereum Classic is generating two bullish higher low setups. The first one can be seen in the price. The market posted another bullish pin bar when it dropped to as low as $11.021 on September 6. This tells us that market participants are ready to buy at a higher price. They are no longer waiting for the ETC/USD to drop to the long-term support area.
In addition, the RSI appears to be respecting support of 37.76. This shows that bulls are extending their territory. They are no longer waiting for the market to reach oversold conditions before making a move.
The strategy is to buy as close to $11.021 as possible. If bulls can maintain this higher low, they will likely generate the momentum needed to climb to our initial target of $17.80.
The process may take less than a month.
Daily Chart of Ethereum Classic/US Dollar on Kraken
As of this writing, the Ethereum Classic/ US Dollar pair is trading at $11.639 on Kraken.
Summary of Strategy
Buy: As close to $11.021 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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