Ethereum Classic Price Analysis: ETC/USD double top pattern correction in action

Ethereum Classic happens to be struggling with increased selling activity after the surge on Monday ran into a wall at $11.00. Interestingly, it has managed to hold to 10% gains accrued in the last 24 hours. However, on a daily basis, it trading only 0.86% higher. The cryptocurrency live rates show the prevailing trend is bearish while the volatility is low.

The snag at $11.00 has formed a double-top pattern whose impact is resulting in the retracement witnessed on Tuesday. ETC/USD is doddering at $10.51 at the time of writing. If declines progress under $10,00, there is a chance that Ethereum Classic could dive to the first support provided by the 61.8% Fibo taken between the last swing high of $11.98 to a swing low of $4.29.

Also in line to offer support when the need comes is the 50 SMA on the 4-hour chart (marginally under $9.00). The confluence formed by the 100 SMA and the 50% Fibo at $8.00 remains intact as the key support.

From a technical perspective, Ethereum Classic is likely to continue to nurture a sideways trading trend in the near term. For instance, while the RSI hit the pause button at 84 it has managed to stay within the overbought. The sideways ranging cement the bulls’ presence in the market and the tendency of ETC to trade horizontally around $10. However, in order to ensure continued movement north, the bulls must rise above the impact of the double-top patterns and push ETC towards the resistance at $11.00.

ETC/USD 4-hour chart