Ethereum Classic Price Analysis: ETC/USD in a free fall after a failure at $7.4

Ethereum Classic (ETC) faced stiff resistance on approach to $7.40 and retreated below $7.00 amid sharp downside correction.  The coin lost nearly 4% of its value in a matter of hours to trade at $6.84 by the time of writing. On a day-to-day basis, the coin is down 4.4%

Ethereum Classic is now the 22nd-largest digital asset with the current market capitalization of $797 billion and an average daily trading volume of $1 billion. The coin is moving in sync with the market, within the short-term bearish trend amid expanding volatility.

ETC/USD: Technical picture

On the daily charts, ETC/USD dropped below critical support created by 200-day SMA on approach to psychological $7.00. This development has worsened the technical picture; however, the move still qualifies as a technical correction as long as the price stays above $6.40. This barrier is created by a combination of 100-day SMA and the middle line of the daily Bollinger Band. If it is broken. the sell-off may be extended to psychological $6.00.

On the upside, the initial resistance is created by the above-mentioned critical barrier of $7.00 reinforced by 200-day SMA. Once it is out of the way, the upside is likely to gain traction with the next focus on the recent high on approach to $7.40

ETC/USD daily chart