A look at the weekly chart for ETC shows that price is currently trading between the long-term support and resistance areas which can be found near $3 and $6 respectively.
Price is currently trading at $4.2.
Price is trading below all the moving averages and the Ichimoku Cloud, the 21-period MA corresponding with the resistance area near $6.
However, there is some bullish divergence developing in the RSI, and the MACD has made a bullish cross and is moving upward with strength.
A look at the 3-day chart shows that price retraced after forming a double top in early January.
That area now constitutes the main resistance area. There is an even more pronounced bullish divergence in the RSI.
Similar to the Weekly chart, the MACD is moving upward with strength.
While price is trading below all the moving averages, the 21-period MA looks to be steadying, possibly setting itself up for a bullish cross with the 50-period MA.
A look at the Daily chart shows that price broke the resistance that started from the double top in January.
Price is above the 21-period MA, and there is a positive daily cloud, possibly allowing the price to break out.
The MACD is moving upward but is not positive yet. Furthermore, it is worth noting that the breakout occurred in very low volume.
Short-Term Outlook and Price Prediction
A look at the 6-hour chart shows that price is currently trading in the minor resistance area formed by the previous support from January 7-28.
We can see that price has developed significant bearish divergence.
If the price fails to break through the resistance area, the next support area will be found near $3.9.
I believe that price will fail to break out from the resistance area and fall to the minor support area near $3.9.
- Price is trading between the main support and resistance areas at $3 and $6.
- Price retraced after forming a double top.
- Price broke out of the resistance line succeeding the double top.