Ethereum Classic could get rejected by key resistance and plummet to $35
- Ethereum Classic price fails to breakout above key resistance levels that would confirm a new bullish expansion phase.
- A continuation move lower towards $43 is likely, with a deeper move expected near the June lows around $35.58
- Bears maintain directional control in the interim.
Ethereum Classic price experienced an impressive 12% gain on Wednesday, with the close equalling the daily high. However, despite the impressive rally, bulls failed to crack above any resistance levels that would yield clear guidance that a resumption of higher prices would continue.
Ethereum Classic price still under bearish control, initial target at $43 with $35 in crosshairs
Ethereum Classic price ran up against some considerable near-term resistance on Wednesday. Bulls got stopped against the daily Tenkan-Sen and 38.2% Fibonacci retracement in the $50 value area. With resistance likely to be confirmed at the psychological $50 level, bears are likely to come back and control this market.
The near-term target for bears is the 100% Fibonacci expansion level at $43. However, if Ethereum Classic price reaches that level, the Chikou Span will move below the Cloud. That will ultimately bring Ethreum Classic into the single most bearish condition within the Ichimoku system it has been in since May 2021. The expected support zone below $43 would be the high volume node and 161.8% Fibonacci expansion at $35.58.
ETC/USDT Daily Ichimoku Chart
Bulls will need to perform a miracle to change the current bearish outlook. For there to be a clear bullish outlook, Ethereum Classic price must close above all the following resistance levels:
- 38.2% Fibonacci retracement ($52.17)
- 50% Fibonacci retracement ($60.51)
- Tenkan-Sen ($50.00)
- Senkou Span B ($57.75)
- Kijjun-Sen ($61.15)
- Senkou Span A ($66)
- 2021 Volume-Point-Of-Control ($58)
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Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
