ETC makes a breakout: What is the signal behind the price jump?

In recent days, ETC has become the focus of trader attention as significant fluctuations occur. To better understand the driving forces behind these price jumps, it’s important to analyze the situation from multiple perspectives, especially through the lens of candlestick patterns and technical indicators.

Large Capital Inflows - Trading Data Speaks Volumes

The first observation from market data is the entry of active investors. Daily trading volume has exceeded 580 million USDT, immediately tripling the usual level. This is not a sign of small retail investors casually participating, but rather a display of large capital strategically accumulating shares in an organized manner.

External capital flow is beginning to show signs of activity, indicating increasing interest from major players in ETC. This rising trading activity is a key factor confirming that some “big players” are involved in this game.

Candlestick Confirmation of Uptrend - Converging Technical Indicators

From a technical perspective, the picture is becoming clearer. The 7-day EMA (short-term moving average) has crossed above the 25-day and 99-day EMAs (long-term moving averages). This crossover is a classic bullish signal, indicating upward momentum is building.

Additionally, MACD has turned positive, and RSI remains high. These indicators converging create a convincing technical picture. The alignment of candlestick patterns and momentum indicators is not coincidental but signals a clear change in supply and demand dynamics.

However, it’s important to note that these signals have appeared before, but most of the market was waiting for a more definitive confirmation. Now, that confirmation has arrived, just as technical analysis predicted earlier.

Challenges Ahead: Resistance at $9.80–$10.00

Despite the positive signals, ETC faces a significant challenge. The resistance zone at $9.80–$10.00 has previously tested the price but has not been decisively broken through.

Notably, capital inflows have started to withdraw, with 42.3 million USDT exiting the market. From the MACD chart, momentum is beginning to weaken. RSI has also pulled back from overbought levels, indicating short-term buying pressure is waning. These warning signs suggest investors should exercise caution at this stage.

The main support level is identified at $8.21. If this level is broken, the next target is around $8.19 or possibly lower. Conversely, if the price breaks above the resistance at $9.79, the next psychological target is $10.

Candlestick Scenarios: Specific Trading Strategies

Based on candlestick analysis combined with other factors, it is forecasted that ETC will fluctuate within the range of $8.76–$9.33 in the short term. This scenario assumes that capital outflows will continue intermittently but not strongly enough to reverse the trend.

Long Entry Strategy: Approaching the $9.33 level is a reasonable point to test, as it is a recent support zone. When observing increased trading volume and bullish candlestick patterns along with strengthening technical indicators (especially EMA crossover signals), consider entering small positions gradually. Profit targets should be set above $9.79, with potential to reach $10.00 if the upward momentum persists.

Stop Loss Strategy: If the price breaks below the support at $8.76 with high volume, it’s crucial to cut losses quickly. This situation indicates that large investors are withdrawing, and the risk of a deeper correction is high. Do not hesitate to exit in this case.

In summary, ETC is at a critical juncture. Candlestick patterns and technical indicators still show bullish signals, but warning signs are emerging. The best strategy is to wait patiently for clear confirmation from capital flows and only participate when technical conditions strongly align.