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The value of Ethereum Classic has fallen by 62 percent since its high, with the cryptocurrency trading at $71.25 at the time of publication. With cryptocurrency trading at such a critical juncture, it appears that ETC’s market was indicating a price collapse in the near term.
Ethereum Classic four-hour chart
Since early May, Ethereum Classic has been heading downward. This might be related to the push and pull volatility seen in the Bitcoin and Ethereum markets. While ETC reached an all-time high of $179 on May 6, the alt’s value gradually declined and plummeted below $71. This $100 drop may simply be the catalyst for yet another upheaval.
ETC rebounded to $71 after hitting a low of $39.77 on May 23rd, thanks to a robust spike and a period of modest moves. This consolidation phase, on the other hand, might result in another drop, pushing ETC to $54.
The ETC market has been experiencing negative momentum as a result of the consolidation period. The Awesome Oscillator indicated a gradual decline in momentum, and it may soon enter the negative zone if the crypto-asset does not hold its press time channel support level of $66.
At this point, the 50-day moving average was also giving support to the price. However, if the price goes below the MA, the charts may soon show a sell-off.
In the oversold zone, the Stochastic RSI was shown to be entangled with the Signal line. This meant that ETC’s market was under significant selling pressure at the time of writing, which might result in another decline for the price in the near future.
Crucial levels to watch out for
Take Profit: $53.70
Risk to Reward: 1.5
At press time, the Ethereum Classic market was preparing for another drop to the $54 level. In reality, multiple causes appeared to be at work and were causing the same outcome. Because the price has been consolidating inside a narrow channel, the breach might drive the altcoin’s decline. The $54 level has already sustained the value of the crypto-asset, and it may be tested again.