- Ethereum Classic weekly high formed at $7.2 marked the beginning of a downtrend.
- All technical levels point towards a rising bear momentum but a reversal is not far off.
Ethereum Classic is transitioning fast from a winner to the biggest loser. The last three weeks saw ETC scale higher levels even reclaiming support above $7.0. The weekly high formed at $7.2 marked the beginning of a downtrend.
The price formed a lower high pattern below the descending trendline and the sellers thrust ETC/USD below the simple moving averages; 50 SMA 1-hour and the 100 SMA 1-hour. The double-cross of the 50 SMA below the 100 SMA suggested that a lower consolidation was imminent.
For now, Ethereum Classic is trading at $6.422. As dumping continues, losses of 3.8% are testing the short-term support area at $6.4. Besides this support, the zone at $6.2 - $6.4 will also cushion the cryptoasset from the looming breakdown.
All technical levels point towards a rising bear momentum. The Moving Average Convergence Divergence (MACD) attempt to cross into the positive region has been rendered unsuccessful. The increasing negative divergence is a signal for stronger bear grip. The almost oversold levels shown by the Relative Strength Index suggest that a reversal is possible in the short-term. Moreover, the Elliot Wave Oscillator has one bullish session after an entire day in the red.
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