Ethereum Classic Price Analysis: ETC/USD extends the sell-off, $7.00 stays unbroken

Ethereum Classic (ETC) hit the recent recovery high at $7.54 and retreated to $7.11 by the time of writing. The coin has lost over 4% since the beginning of Thursday amid strong bearish momentum triggered mostly by technical factors. ETC/USD faced a stiff resistance on approach to $7.50 that stopped the recovery twice in 2020. 

Ethereum Classic is now the 21st-largest digital asset with the current market capitalization of $872 million and an average daily trading volume of $849 million. The coin is moving in sync with the market, despite the retreat, the short-term momentum is bullish, while the volatility is low.

ETC/USD: Technical picture

On the daily charts, ETC/USD recovered above the psychological area of $7.00 reinforced by 200-daily SMA. This barrier stopped the sell-off during early Asian hours, however, the further recovery seems to be limited at this stage as the daily RSI has reversed to the downside from the overbought levels. The local resistance is created by the combination of 50-hour SMA, the middle line of the 1-hour Bollinger Band and the upper line of the daily Bollinger Band at $7.28.  A sustainable move above this area is needed for the upside to gain traction with the net focus on the previous local barrier of $7.40 and the recovery high of $7.54.

ETC/USD daily chart

On the downside, the local support is created by the upward-looking 100-hour SMA at $7.09. Once it is broken, the sell-off may be extended to the psychological $7.00. This area has the potential to limit the downside momentum; however, once it is broken, 200-hour SMA at $6.72 will come into focus.

ETC/USD 1-hour chart