Hello, at the beginning of the week we have seen a notable increase in the market capitalization of cryptocurrency, something that for some has surprised, because yesterday the price of cryptocurrency, to mention one in specific (Bitcoin) had a collapse to the 8335 USD approximately leading to a liquidation of long positions, by the way.
In this occasion, we will analyze the price of the Ethereum Classic cryptocurrency, which apparently has been recovering at a slow pace, currently trading at USD 18.60 per unit. In the following chart in a time frame of 4H we see how the Ethereum Classic has had a considerably lower projection
Well, now you wonder what we can expect in the next hours or maybe days? The most probable thing is that an upward correction happens but this does not mean that it is a definitive change of trend, why? well in the following graph we will use a pair of tools, the ichimoku cloud which tells us the current trend of an asset, if the price of an asset is below the cloud, it can be considered a bearish trend, if the price is Above the cloud is a bullish trend and as we can see, the price is below the cloud, but as I said at the beginning, it is possible that the price will recover, touching the levels of $ 20 or $ 21 USD approximately, but why these levels?
Those levels mentioned above are justified with the use of the fibonacci retracement tool, which if we draw it from the point where there was a slight recession until the projection of the lowest point, the golden ratio will give us the $ 20.95 USD to be exact, This level can be considered as a psychological level where there may be a probable concentration of supply, which may reach the price until then and then a new fall occurs. This we add also if the volume is limited, it is possible even more a possible fall to $ 19.18 USD.
In conclusion, I personally would not buy (although I still keep my ETC that I bought last year) rather I would place sales orders or margin sell at those levels and wait for the price to go back a bit and make a new technical analysis.
Disclaimer: it is not a recommendation of purchase or sale, remember that operating these types of markets can lead to total or partial losses of your capital if you do not carry an adequate risk management on your capital.