- Ethereum Classic price drops 13% in just 36 hours of trading as the Merge triggers a sell-off
- ETC price bounces off a very important pivotal level, for now.
- Expect, with mounting sell-pressures from a stronger dollar and dropping equities, to see a possible breach towards $30.
Ethereum Classic (ETC) defaults on some very important levels in the aftermath of the software upgrade to crypto bigger brother Ethereum. With the Merge, Ethereum tried to brush up its green image by becoming more energy efficient. Unfortunately, the event became a pump-and-dump scenario with traders massively buying into the event, only to cash in when Merge was actually announced, in a classic buy-the-rumour-sell-the-fact sell-off.
ETC price breaks below supports
Ethereum Classic received a strong rejection from the upper border of a pennant price pattern, identified at the beginning of the week. What followed was a sell-off that pared back the recovery from Wednesday. This time, traders fully gave up on buying the dip, which led to further losses and price opening below the 55-day Simple Moving Average (SMA). This is perceived as a very bearish and negative sign in the markets. It led to further follow-through selling in the trading hours after, during the ASIA PAC session, and ETC price hit $32.90, a very important pivotal level.
ETC price is currently bouncing higher off that pivotal level and might look like a good moment to buy into, but it is probable another sell-avalanche is on its way. During the European session, the dollar gains again and strengthens its grip further on the markets, while equities are tanking across the board together with commodities. A sell-off looks set to kick in, meaning ETC price could break below $32.90 and drop 11% towards $30 with the 200-day SMA below, trying to provide support before going into the weekend.
ETC/USD Daily chart
An alternative scenario is that the current bounce in play could be enough to make price action close above $32.90 before going into the weekend. With the weekend, traders will have time for the dust to settle, and Monday trading could bring a new turnaround. That would mean ETC price could see itself clawing back above the 55-day SMA at $36 and trying to run up to $42 should next week's trading be positive throughout the week.
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.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?