Ethereum Classic Market Update: ETC/USD rejected at $7.4, will $7.00 support hold?

Ethereum Classic is among the cryptocurrencies that have quickly retreated after an incredible trading period since last week. The digital asset’s bulls started by establishing key support at $6.00. The rally among the altcoins saw ETC/USD commence a journey upwards. However, it is only the movement by Bitcoin (BTC) and Ethereum (ETH) that pulled Ethereum Classic above multiple resistance zones at $6.40, $6.80 as well as $7.00.

The price action on Monday propelled ETC farther above $7.00. Gains touched the next key hurdle at $7.40 but failed to disperse the sellers’ congestion in the area. Instead, the price has suffered consistent declines, especially during the Asian session on Tuesday.

Meanwhile, ETC/USD is exchanging hands at $7.17. The range between $7.20 and $7.40 has established itself as the main resistance zone in the near term. According to various technical indicators, Ethereum Classic is likely to settle for consolidation above $7.00.

The RSI, for instance, appears to have slowed down the downtrend and seeking support at the midline. Continued sideways action would put emphasis on the consolidation. However, it is important to be aware that selling pressure has not been ousted. This is evidenced by the downward trending MACD in addition to the bearish divergence under it. Besides, the expected support at $7.00, extended declines will seek anchorage at $6.80 and $6.40 and $6.00.

ETC/USD 1-hour chart