Hello Ladies and Gentlemen,
I hope you are all doing well this morning. Something truly jaw-dropping has been happening over on the Poloniex exchange this evening. Ethereum Classic, Etheruem's pre-fork chain has risen over 400% in less than 12 hours. Check it out!
As you can see, for the beginning of ETC's short trading life it was on a steep downtrend with most seeing it as a "Free" token that never had a true future other than nostalgic value. This argument was also cemented in the fact that we all know the Dao attacker as well as many other large holders now have a very large stake in ETC.
After reaching a low of just below 0.00065, ETC started to rise rather sharply and didn't stop. By the time ETC had reached 0.002, it's 24 hour volume was already above 20k btc. It continued to rise at a fair pace until surpassing the 0.0029 level of previous resistance and then rocketed to a high of 0.00485.
By the time ETC had reached 0.00485 it had gained a full 450%+ and surpassed the 24 hour volume of it's sister chain Ethereum. To say I was impressed is a absolute understatement! Who would've thought?
Obviously someone else had different plans. ;)
There is clear support at 3 major levels:
- The first and strongest level is 0.00065 - 0.00079. This represents the lowest ETC has traded for during normal trading.
- The second strongest level is 0.00146 - 0.00164. This represents previous resistance that has now become support from early on in trade.
- The final and weakest support level is 0.00276 - 0.00294. This corresponds with the very first spike in ETH price after trading begun and acted as a major psychological level for traders once was broken, because of this it will most likely act as support as well.
The volatility at the moment is enormous, Price is jumping from 0.0035 to 0.0045 over the matter of seconds. Is the Dao attacker dumping their coins? ;) Regardless, I'd be careful if I was you!
Now for some Ethereum (ETH) Analysis
As ETC started to rise, ETH started to go down fairly heavily. It was obvious traders were trading ETH & BTC for ETC. I'm sure the vast majority of which did so for no reason other than greed and profits, but no one can be sure except for those whom purchased, eh?
As of recently, ETH has been trading in a downward channel. The recent drop in ETH prices has yet to push it through the channel support lines and until then, we can not be sure of more declines. I noticed that the downward channel support line matches up fairly well with the medium term downward resistance line. I always like to look for correlation in order to help me have confidence that certain levels will be respected.
If ETH breaks below 0.0174, the next line of support will be in the neighborhood of 0.0161, and then 0.0155. If it reaches this point all trendlines for both short and medium term will be broken and trading will most like look to the major long term support around 0.01417. If it breaks 0.01417, 0.01390, and 0.01255, hold on to your hats ladies and gentle, it will be a bumpy ride!
ETH Volume for the 24 hour period currently is at 81,497 BTC, the highest level since June 21st, 2016.
ETC has already "done the impossible" and broken above it's previous high of 0.00294. Can it make it to the level it originally opened at? Is 0.01 BTC/ETC in our near future?
Exciting times!