Ethereum Classic price analysis: ETH/USD soars 5% in a bearish market

Ethereum Classic is visibly the leading cryptocurrency among the top 20 cryptos. The $661 million crypto soared massively on Tuesday. The gains brighten the crypto market that is already a sea of red. Bitcoin continues to drag the major altcoins down following the failed attempt to correct above $11,000.

Ethereum Classic, on the other hand, is trading at $5.88 after a shallow correction from the highs achieved at $6.19. Prior to the remarkable movement, ETC was in consolidation within a range between $5.4 and $5.7. The declines that dominated the market last week found support at $5.3 allowing for a reversal.

The surge comes after an article about ETC by Etherplan gave the crypto a ‘Buy’ and ‘HODL’ rating. This means that ETC is a good store of value. The article explains that “will be perfect for use by consumers and enterprise for high value, high-security property and agreements management.”

Read also: Mark Mobius bashes Bitcoin and crypto as ‘psycho currencies,”: Showers gold with praises

Ethereum Classic initial break above the 50 Simple Moving Average (SMA) and the 100 SMA 1-hour paved the way for another break past the descending trendline resistance. An engulfing candlestick cleared the resistance at $5.8 - $6.0 but the trend hit pause short of $6.2.

For now, the overbought levels mean that ETC/USD is likely to seek lower support preferably at $5.8 before attempting another leg towards $7.0. Technicals are, however, still strongly bullish.

ETC/USD 1-hour chart