On May 12, Bitcoin fell to $26,700 and Ethereum Classic hit a low of $16. Prices have bounced back a lot since then. However, with Bitcoin stuck between $30,700 and $28,700, the market has yet to recover. The fear is still strong and the rally is to sell. This may also apply to Ethereum Classic, where the $24 level brings the price back down to around $21.
Ethereum's classic price is up, but it could be a bull trap
Ethereum Classic rose from $19.41 to $24.23, charting a Fibonacci retracement (yellow line). In the lower time frame, prices have formed a series of lower highs and lower lows over the past four days. The bulls traded high above $21.8 overnight, although the pullback also saw plenty of volume. However, this seems to suggest that buyers have some power in the market.
The question now is whether the etheric classics can continue to climb. It does in the hourly time frame. However, a check of the higher time frame suggests that the $24.4 level is a strong resistance level. At the same time, the $21.6 to $21.8 area has reversed from resistance to support. A break below $21.6 could signal bearish forces in the days ahead.
Ethereum's classic price is up, but it could be a bull trap
Ethereum Classic responded to the rally to $24.2 with the awesome oscillator surging. In recent hours, however, prices have fallen back below the zero line, indicating an increase in bearish dominance. At the same time, the exponential smooth moving index also formed a bearish cross, diving toward the zero line.
Ethereum's classic price is up, but it could be a bull trap
The forward/down line has been relatively flat over the past week, with the exception of the previous day's big gains. This suggests that the buying and selling pressures are almost equal. If Ethereum Classic is on the verge of a recovery, the forward/down line may have been climbing in recent days to show strong buying. However, this is not the case.
Ethereum's classic price is up, but it could be a bull trap
The lack of buyers, coupled with concerns about Bitcoin, suggests that Ethereum Classic is likely to move lower on the chart. The $21.6 mark is worth watching and a close below that level could push prices lower on the chart.