Ethereum Classic bulls in panic as ETC stands ready to shed 13%

  • Ethereum Classic price is caught in a downward trend for seven consecutive days.
  • A break lower looks to be inevitable for price action. 
  • Support might not be strong enough at $52.44 and open an additional  8% of correction.

Ethereum Classic (ETC) price was moving to the downside with sellers defending a red descending trend line with already three confirmed failed attempts from buyers to break the trend. Sellers are now adding additional support for their short positions at the 55-day Simple Moving Average (SMA). 

Ethereum Classic price ready to retrace

The red descending trend line in Ethereum Classic originates from September 8 and has been dictating price action ever since. With lower highs and lower lows, sellers look to be mainly in the driving seat. That does not mean that buyers are just standing on the sideline watching though. A few attempts have emerged from buyers in ETC to break the red descending trend line to the upside. Those attempts failed each time, resulting in a massive inflow of shorters, followed by a significant correction the next day. The correction yesterday touched $52.44. A critical level going back to July 27 with several tests on both the upside and downside in ETC. 

Ethereum Classic buyers will want to wait now and might not be eager to step in at $52.44. The problem is that there is only one reason to go long, with the level an indication of previous importance. That looks relatively weak for being the main reason to get in here.

ETC/USD daily chart

ETC/USD daily chart

Ethereum Classic sellers will want to test $52.44 and drive prices lower toward an interesting level to book profit. That level in ETC offers itself at $48.33. Both buyers and sellers have three reasons here to react. There is historical importance from April 16, but it is also the monthly S1 support level. Although broken through, it was able to stop the violent falling knife from September 7. The last element is the 200-day Simple Moving Average (SMA) that will act as additional support and an incentive for buyers to step in. 

In case sentiment shifts toward more risk, ETC sees more buy-action in its price, expect a break higher above the red descending trend line and subsequently a retest of $63 with the dotted red level and the monthly pivot as two main factors to book some short-term profit on those longs.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

Since XRPArmy and lawyers in the crypto ecosystem consider the US Securities & and Exchange Commission’s (SEC) move to pull documents out of public view as evidence that the case is coming to a close, a Ripple win appears more likely.

More Ripple news

Bitcoin Weekly Forecast: BTC must hold $45K to target new all-time highs

Bitcoin price is on a rollercoaster ride as it crashed violently on September 7, consolidated for a few days after that and went on an uptrend to undo the losses. Over the past 24 hours, however, BTC seems to be consolidating for a volatile move without a clear directional bias.

More Bitcoin News

Chiliz price to retrace before CHZ runs up

Chiliz price is stuck in a tight consolidation above a crucial support floor and shows no signs of recovering from this slump. In fact, CHZ might retrace lower before heading on an uptrend.

More Chiliz News

ICX Price Prediction: ICON prepares for 20% descent as bulls fade away

ICON price looks ready for a swift downswing after an explosive run over the past ten days. The crypto markets’ slowdown after the recent run-up makes this bearish scenario a perfect fit. Going forward, investors can expect ICX to head lower and retest stable support barriers.

More Cryptocurrencies News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast