From price action, it’s safe to say that ETC is set to appreciate in the coming days and yes, the bullish break out pattern with strong support at $25 is still valid.

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In my opinion, following those long lower wicks after close of week ending January 21, bull pressure spilled over to last week, shoring prices as the week ended bullish and most importantly above $25. This is what we needed and should it be confirmed, it’s my forecast that there are high chances of prices trending back to above the first Fibonacci extension level at $41.

Of course, given the size of the bearish engulfing pattern that still define our high lows, we cannot discount a follow through and USD bull pressure driving back prices to $25 or lower. After all, week ending January 21 candlestick tested lows of $21 and the middle BB which as we have explained before is our main support line.

In the daily chart, ETC prices bounced off $25 and with January 28 confirming bullish pressure, we still need prices to turn and at least close above $40.

If it does, we can confidently say buyers are back and are likely to trend within a $25 consolidation capped by the double tops at around $50.

However, if prices fail to close higher, we can be rest assured that USD bulls will trend higher and our neck line would be retested in the coming sessions. Any break below $25 and $21, and sellers would be angling at $9 if push comes to shove.

ETC prices are currently trending at the supports of a nice or should I say a beautiful triple bottoms. Needless to say, any reaction at this level will make or break ETC.

With yesterday closing as a bear, there are chances of prices closing lower and inching towards $25 main support.

If not, now that there is a bit of under-valuation with a long lower wick candlestick closing below the lower BB, and prices rebound, buyers can wait for a potential 3-bar reversal bull pattern confirmation along this main support.