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Assessing the Ethereum Classic price and the risk it bares moving forward

  • Ethereum Classic price rose by 16% last week.
  • The volume shows a subtle cue of waning strength during the up trend.
  • A hurdle above $ 24.82 would void the bearish potential.

Ethereum Classic price is becoming more of a risk for traders as the digital currency continues to rise unexpectedly. This thesis provokes a devil’s advocate perspective shining a light on what is lacking from the current uptrend move.  

Ethereum Classic price shows bravery

Ethereum Classic has displayed applaudable price action throughout January. Last week, the original Ethereum-rivalry token rose by 16%, establishing a new high for the month at $23.90. Now, as markets witness its first consolidation post-surge, the technicals show signs that warrant skepticism of the bullish strength.

Ethereum Classic price currently auctions at $25.23. The uptrend move saw a sparse influx of 14 million dollars worth of transactions, up by just 1.4 million from the week prior. During the previous week, ETC rose 30%. Thus, the influx of transactions is not correlating with price and could be a subtle cue that retail investors are the sole proprietors of the current trend. 

It is worth noting that the volume for both weeks is still relatively less than September 5’s weekly influx of 46 million dollars of transactions that catalyzed a 30% rally. Ultimately, the ETC price failed one week later and went on to decline by 48% from $38 to $16 in four months.

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ETC/USDT 1-week chart

If the market is still at risk of a downside move, placing an invalidation point above October’s high at $24.82 could lead to a profitable trade idea targeting the origin points of the current rally at $14. ETC could decline by 33% if the bears were to succeed. 

This video details how Bitcoin price moves could affect Ethereum Classic price

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.

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