On the 4 hour chart, ETC is showing positive divergence(most clearly shown on , but you can also make it out on the ). Positive divergence is where the is trending up while the price action is trending down. It is a classic sign that a reversal may be imminent because sellers are losing momentum. It's also important to match this up with historical supports/resistances as well:
-Support at ~21s
-Historical support dating back to even November 2017 at 19s... even lower at 14s
-Resistance at 28s(not only due to historical data, but also check the thick blue line which is the 200EMA)
For even further evidence that a reversal may be imminent, check the Daily chart:
See the dipping its toe into "oversold"? See what happened last time it dared to take such a bold move? Price action reversed from around 14 all the way up to the mid 40s!!! Around a 300% increase! Look at the context of the being oversold too: it was during a positive trend(pink above blue ). When a coin is oversold during a positive trend, a rebound will usually happen.
As a general rule though, don't rely on your in the following scenarios: If it is above 80(overbought) during an uptrend. If the is below 20(oversold) during a downtrend. This makes logical sense when you think about it. OF COURSE when there's an uptrend, the price action will . And I think it goes without saying, but don't ever rely on simply one indicator alone.
Let's see whether this reversal can take place, or if ETC will dip even farther to the 19s or 14s
Stay healthy folks <3
So let's be clear here... positive divergence never guarantees a reversal, just makes it more likely. Another thing to note this time around is that MACD is getting closer to 0 as well, which in the last positive divergence it was absolutely in the dumps.
As usual... i'll keep you updated but until then... don't watch!