Ethereum Classic Price Movement Analysis for 20th July, 2021

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So far in July, Ethereum Classic has not had a good month. The cryptocurrency’s value peaked around $63 at the start of the month, but relentless selling pressure brought it below numerous support levels.

ETC’s descending triangle breakdown was prompted by Bitcoin’s recent fall below $30,000, and the altcoin is now hunting for support at its June 22 low of $35.8. With a market worth of $4.94 billion, Ethereum Classic was ranked 18th on CMC at the time of writing.

Ethereum Classic 4-hour chart

Source: ETC/USD, TradingView

Support levels at $49.4, $40, and, most recently, $32.1 all shattered under selling pressure as ETC’s value fell steadily during July. As ETC approached its second support zone of $32.1-$36, it likewise broke down into a descending triangle. Surprisingly, the Point of Control for this Visible Range was located within this region, which coincided with the peak interest in ETC.

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ETC’s price could reset and reverse its course if the defensive zone succeeds to buffer selling pressure. However, a closing below $32 would put ETC in uncharted territory, leaving it vulnerable to further drop.

 

Reasoning 

Since July 12, the Relative Strength Index has been trading in an up-channel, and while forming a bullish divergence with ETC’s price action, the clues have not been sufficient to warrant a bounceback. A break of the lower trendline would signal a bearish outcome and a drop to $32.1-$36.

The Aroon up recently had a bearish crossover and went below the Aroon down, indicating that selling pressure has increased. According to the Awesome Oscillator, momentum was bearish-neutral, but the fact that the indicator has not risen over the half-line in nearly two months indicated the lack of northbound pressure.

 

Conclusion 

As the price approaches a major support zone of $32.1-$36, a bearish trend is anticipated to resume for ETC in the coming days. There’s a chance, nevertheless, that the price may reset within this range and resume its upward trend. To be on the safe side, traders should wait for indicators of a trend reversal before entering long positions in this area.

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