Ethereum Classic today jumped 10-percent against the US Dollar, coinciding with Robinhood's announcement of adding the coin to its trading app.
The Ethereum's unforked version had started recording gains soon after Coinbase, one of the world's leading cryptocurrency exchanges announced that it would add the coin to its portfolio. On August 3rd, the day the announcement was made, the ETC/USD had established an intraday low at $14.11. However, the pair collectively gained 18% in value on the same day across all the exchanges, confirming the Coinbase impact.
The same day also witnessed moderate selling pressure, under the influence of which Ethereum Classic dropped to $15.82 on Kraken Exchange. However, the downside never intensified its stay, and price eventually started to consolidate within a strict $1-1.5 range. And today, on August 6th, the ETC/USD gained 10% in value as other top coins, including Bitcoin and Ethereum, continued to underperform.
At the time of this writing, the Ethereum Classic's market capitalization stands at $1.90 billion.
A Technical Opinion on ETC/USD
The ETC/USD, which was previously trading below the ascending trendline depicted in orange, has attempted a successful breakout in the past three days. The buying sentiment is further confirmed by other technical indicators, mainly the RSI and Stochastic that have jumped into the overbought area on a 4H chart. Also, the fact that the ETC/USD's 200H moving average has crawled above 100H and 50H moving averages add to the current bullish bias in the market.
As far as ideal long/short positions are concerned, Ethereum Classic is now above 61.8% Fibonacci level of the last downtrend move from $19.00 swing high to $14.12 low. The current upside momentum puts $18.69 in view as an ideal long position (a strong resistance level from July 2018). If it is broken, a long position towards $19.00 as the primary upside target would seem ideal, given a stop loss 2-pips below the entry position is placed to safeguard positions against potential bias reversals.
Meanwhile, the ascending trendline could keep providing support to the prevailing uptrend.
The cryptocurrency markets are not known to handle an overnight bull run for more extended periods. Just the last week, we have seen Tron recording impressive gains within 24 hours, also owing to strong fundamental factors, but the coin also witnessed a vast dump, eventually erasing every gain it had made during its near-term bull run.
Ethereum Classic's upside could reverse anytime if the other top coins begin to attract buyers, now that they can be bought cheap. Should it happen, putting short towards the ascending trendline could bring decent intraday profits.
We'll continue to monitor ETC/USD markets for more critical updates.
Featured image from Shutterstock. Charts from TradingView.