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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
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.
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.
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.
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.