Is this the only viable trading strategy for Ethereum Classic right now

Is this the only viable trading strategy for Ethereum Classic right now

Ethereum Classic was gradually getting back to its feet after a torrid sell-off on 27 October erased 13% of its value and caused a single candlewick drop to 3-month low. Underpinned by a recuperating MACD and RSI, Ethereum Classic did regain footing above $50.

However, it needed to overturn its 38.2% Fibonacci level to transition to a bullish-bias. At the time of writing, ETC traded at $54.6, up by 2% over the last 24 hours.

Ethereum Classic 4-hour Chart

According to the Visible Range Profile, 60% of trades placed in the ETC market since 15 September were between the 23.6% and 38.2% Fibonacci levels. As buyers and sellers parlayed to take control, ETC kept within a neutral bias throughout October.

It oscillated within a rigid price barrier around $57 and a reliable support at $50. Although this defense was breached on 27 October following Bitcoin’s retracement to $58,000, ETC managed to regain lost ground over the next few days.

Now trading back within its value zone, ETC could stretch gains and tag the 38.2% Fibonacci level once again. Lower highs on the MACD and RSI were an encouraging sign after each indicator replenished from monthly lows. A favorable crossover between the 20-SMA (red) and 50-SMA (yellow) would lend a helping hand.

However, note that the RSI and MACD were trading close to their respective half-lines and were not in overly bullish positions. Without strong buy volumes to aid ETC’s ascent, the price would face difficulties in closing above $56.7. Moreover, an ADX reading of 18 indicated a weak directional market despite ETC’s recent recovery.

Conclusion

Although ETC showed promise above $50, lack of strong directional cues could keep it restricted within its 23.6% and 38.2% Fibonacci level. Scalping would be the only viable strategy since ETC was expected to remain within a fixed channel.

Source

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