- Ethereum Classic extends downward action after stalling under $7.50.
- ETH/USD eyes $7.00 support in order to gain momentum to overcome resistance at $7.50 and $10.00.
Ethereum price has been in consolidation within a narrow range since the beginning of August. Prior to the sideways trading, ETC/USD broke out in tremendous gains in tandem with the generally bullish market in the last two weeks of July. The cryptoasset stepped above several key resistance levels including $8.00. This saw ETC exchange hands at levels last seen in March before the Coronavirus-driven market crash.
The sharp declines that followed the spike to $8.318 sort refuge at $6.50 after several key levels failed to hold water including the 50 SMA and $7.00 support. Intriguingly, a reversal saw ETC/USD take back the support at $7.00. Unfortunately, gains have remained limited under $7.50.
Ethereum Classic is trading at $7.138 amid losses from the 50 SMA resistance in the 4-hour range. The drop has been consistent in the Asian session. The RSI puts emphasis on the declines as it trends lower below the average.
Support at $7.00 is likely to hold in spite of the strong arm of the bears. Sideways trading could also take precedence based on the horizontal trend seen with the MACD.
In order to come out of the resistance range under $7.50, ETC/USD must pull toward $8.00 and focus on taking down higher hurdles at $10.00. If push comes to shove and $7.00 support gets shuttered, expect more support at the 100 SMA ($6.50) and the primary support at $6.00.
ETC/USD price chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.