ETC Technical Analysis Feb 3

ETC’s 24-hour trading volume is at 41.85 million dollars, showing a limited recovery within the general downtrend; however, the low-volume rise indicates weak market participation and carries sustainability risk. Although the volume profile suggests possible accumulation signals at support levels, institutional participants appear to be approaching cautiously.

Volume Profile and Market Participation

ETC’s current volume profile shows that the 24-hour trading volume of 41.85 million dollars is below recent period averages. Despite the price recording a 3.27% rise in the last 24 hours within the general market downtrend, this move is supported by low volume. For a healthy rise, volume is expected to confirm the price movement by at least 1.5 times; however, volume participation remains weak here. This situation reflects limited interest from retail investors and emphasizes that the broader market sentiment is still bearish.

Multi-timeframe (MTF) volume analysis detects a total of 11 strong levels across 1D, 3D, and 1W charts: 2 supports/1 resistance on 1D, 2 supports/2 resistances on 3D, and 2 supports/4 resistances on 1W. These levels indicate points where volume clusters are concentrated. In particular, the $9.01 support level (score 75/100) stands out as a critical accumulation zone in terms of volume. Low-volume days show reduced market participation and a dominant wait-and-see mode. While volume increases have been observed in recent down moves, the low volume in today’s uptick confirms weak momentum.

Educational note: In the volume profile, ‘high volume nodes’ act as support, while ‘low volume nodes’ become rapid transit zones. Around $9.74 in ETC (score 63/100) is a low-volume region; jumping up from here could be risky.

Accumulation or Distribution?

Accumulation Signals

While RSI at 29.66 points to the oversold region, potential volume increase at $9.01 support could signal accumulation. Despite the price remaining below EMA20 ($11.06) within the downtrend, volume accumulation is observed at MTF support levels. This provides a clue that big players are collecting buys from low levels. In healthy accumulation, volume decreases on declines and rises at support – ETC’s 2 strong supports on the 1W timeframe support this pattern. If volume rises above $50M+, accumulation confirmation strengthens.

Additionally, although Supertrend is bearish (resistance $11.57), oversold RSI combined with low-volume stabilization increases the possibility of hidden accumulation. Historically, ETC has experienced 20%+ rallies with volume explosions at similar oversold levels.

Distribution Risks

On the other hand, today’s 3.27% rise being low-volume could signal a potential distribution trap. If volume does not confirm as price approaches $10.13 resistance (score 71/100), selling pressure may come after a short squeeze. MACD’s negative histogram and 4 resistance levels on 1W raise distribution risk. In distribution, volume is typically low on rises and high on declines – the recent downtrend fits this profile. $41.85M volume could be a level where institutional selling is hidden.

Price-Volume Harmony

Price movement shows divergence from volume: While the downtrend continues, today’s rise lacks volume, increasing ‘fakeout’ risk. For a healthy uptrend, volume should be high on up moves and low on down moves; the opposite is observed in ETC. Divergence example: While price makes new lows below EMAs, there is stabilization at supports in the volume profile – potential bullish divergence.

Lack of volume confirmation shows the price is fragile at $9.80. If $9.01 support holds with volume, harmony is achieved; otherwise, the bearish target of $6.33 (score 22) activates. Educational note: Volume confirms price; if no confirmation, the trend does not change.

Big Player Activity

Institutional activity patterns are concentrated at MTF volume levels. The 2 supports/2 resistances on the 3D timeframe may indicate whale accumulation zones. High-volume days (e.g., $60M+) herald big buys; the current $41.85M shows a cautious stance. ETC accumulation in whale wallets should be monitored – low volatility signals hidden positioning. However, exact positions cannot be known; only volume footprints are interpreted. Recent volume increases on down moves fit a stop hunt pattern.

More detailed footprint analysis is available on the ETC Spot Analysis and ETC Futures Analysis pages.

Bitcoin Correlation

While BTC rises 2.68% to $79,005 with Supertrend bearish, ETC as an altcoin shows high correlation (generally 0.85+). If BTC supports at $78,671 and $74,604 break, ETC’s $9.01 support will be tested and the bearish target $6.33 accelerates. If BTC resistances at $79,385-$83,548 are surpassed, ETC could head toward the bullish target $13.30 (score 33). BTC dominance increase crushes altcoins; in the current downtrend, ETC volume stays in BTC’s shadow. Key BTC level: $78,671 – this is a pivot for ETC.

Volume-Based Outlook

Volume-based outlook is cautiously bullish: Oversold RSI and support volumes favor accumulation, but low participation hinders a sustainable rally. In the short term, if $10.13 resistance breaks with volume, $13.30 is targeted; otherwise, drop below $9.01 leads to $6.33. Watch: Long if volume exceeds $50M+, short if below $30M. Volume speaks the truth beyond price – if participation does not increase, downtrend continues. Long-term, MTF supports offer recovery potential.