Ethereum Classic jumps to $13.00 only to drop below $12.00

• Ethereum Classic (ETC) has been extremely volatile during early Asian hours due to technical factors.
• A sustainable move above $12.00 is needed to improve the picture.

Ethereum Classic (ETC) has been wild on Thursday. The coin jumped from $12.00 to $13.00 in a matter of minutes and crashed below  $12.00. At the time of writing, ETC/USD is changing hands at $11.90. The coin has erased the largest part of the earlier gains.

Ethereum Classic now takes 15th place in the global cryptocurrency rating with the current market capitalization of $1.46 billion. About 47% of all ETC addresses are in the money now, while the 30-day volatility is close to 150%.

ETC/USD: Technical picture looks bearish

The nature of the recent spike remains unknown, though, despite the retreat, the coin is still moving within a long-term bullish trend. The local support created by psychological $12.00, has been taken out, which increased the selling pressure and pushed the price towards the next barrier at $11.40 ( the middle line of the daily Bollinger Band). A sustainable move below this area will worsen the immediate technical setup and allow for a deeper decline towards $10.00 and $9.50 ( the lower line of the daily Bollinger Band).

On the upside, the coin needs to get back above $12.00 as soon as possible to mitigate the selling pressure and bring bulls back to the market. Once this happens, the local barrier of $12.50 will come into focus, followed by the recent high of $13.00.

Considering the downward-looking RSI on a daily chart, the bearish scenario has a higher probability at this stage.

ETC/USD daily chart

 

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