|

Assessing the Ethereum Classic price and its bounce-worthy potential

  • Ethereum Classic price has been down 50% since September.
  • ETC price hovers over a key Fibonacci level.
  • The uptrend depends on the $20 liquidity zone remaining unbreached.

Ethereum Classic price is at an appetizing level that could reward early buyers. Key levels have been defined.

Ethereum Classic price has potential.

Ethereum Classic is down 50% since the summertime 3x rally occurred. Now the question is will O.G. ETH show a bounce or reach its ultimate demise?

Ethereum Classic price currently auctions at $21.86. The Relative Strength Index (RSI) shows the ETC price fell into extremely oversold territory amidst the recent decline. The RSI fell into the equivalent level that ETC fell into at $13 before the 3x bullrun. 

tm.etc.10/21.22

ETCUSDT 8-Hour Chart

The price action still leans in the bulls' favor as the largest candle sticks within the previous uptrend, and current selloffs are green engulfing candles. A Fibonacci retracement tool surrounding the entirety of the 3x rally shows the current $22 ETC as just a mere 61.8% retracement.

The Ethereum Classic price shows multiple bullish signals when putting everything together. A rally towards the previously broken support at $27 would yield a 25% return for early bulls. Invalidation of the bullish countered idea would be a breach below the $20 thrust candles.

If the bears tag this level, the entire trend will likely be in jeopardy. The bears could reroute south towards $13 summer lows resulting in a 20% decrease from the current Ethereum Classic price. 

In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

More from Tony M.
Share:

Editor's Picks

XRP ticks up as risk-off mood, weak ETF demand cap recovery

Ripple (XRP) rebounds above $1.23 from support at $1.20 at the time of writing on Wednesday, as the broader cryptocurrency market pares losses triggered by escalating tensions in the Middle East.

Crypto Today: Bitcoin, Ethereum pare losses as XRP rebounds amid escalating tensions in the Middle East

The cryptocurrency market remains largely under pressure on Wednesday amid escalating tensions in the Middle East. After plunging from its May high of $82,823, Bitcoin (BTC) is showing signs of stabilization, consolidating above the key $67,000 support level.

Bitcoin takes a breather above $65,000 amid swelling institutional pressure

Bitcoin hovers above $67,000 as of Wednesday, taking a breather after over 6% loss the previous day. Whales are reducing their BTC holdings, likely influenced by the 12-day streak of ETF outflows.

Ondo extends gains, defying the broader market crash

ONDO extends gains on Wednesday, after rising 9% the previous day. Early access to Ondo Perps, offering 24/7 perpetual futures on US stocks, ETFs, and commodities, fuels the recovery.

Billions in ETF outflows don’t bode well
Bitcoin (BTC) remains under pressure, trading below $74,000 on Friday, and is set to post its third consecutive week of losses. The institutional sell-off continues, with spot BTC Exchange-Traded funds (ETFs) recording billions in outflows. In addition, sticky inflation and macroeconomic headwinds suppress the Crypto King’s upside potential. Institutional demand continues to weaken so far this week.