Aaryamann Shrivastava
FXStreet
- Ethereum Classic price fell to trade at $21.2 following November 9’s market-wide crash.
- ETC lost its uptrend, but a downtrend is not yet set in stone as the altcoin faces critical support and the possibility of a bounce.
- Ethereum Classic’s movement does not warrant a sell-off, as broader market cues are expected to turn bullish over the next few days.
Ethereum Classic price, following the broader market cues, posted a red candle on November 8 and 9, bringing the price down to a four-month low. This impacted the gradual recovery in the on-chain activity that monitors investor engagement as ETC holders pull up to the curb for a while.
Ethereum Classic price next target
Ethereum Classic price has fallen by 14.2% over the last 24 hours to bring the altcoin to trade at $21.2. It is now testing the top of a downtrend line that ETC successfully flipped into support back in July 2022. This 15-month-old line looks like it will be tested once again as the candlestick hovers right above it.
Considering the state of the broader market, recovery could take a little while longer since the bearish cues are only now beginning to recede.
If ETC manages to sustain its price above the downtrend line, the coin could soon rise and be on its way to retesting the critical resistance of $25.8. Ethereum Classic failed to flip this level into support last month after it fell through it in October. A close above it would push ETC back to the same price levels it was at a month ago.
ETCUSD 1-day chart
However, ETC could continue treading close to the downtrend line if a recovery is not initiated. Despite the dotted line of the Parabolic SAR - an indicator used to highlight the expected direction of an asset’s price - sitting above price and therefore signaling a bearish bias, a downtrend is not active. It appears the trend is not strong enough yet to reflect the Parabolic SAR’s signal.
If the Average Directional Index (ADX) crosses above the 25.0 threshold, it will be a sign the downtrend carries more weight. Yet even then ETC bears will have critical support at $18.17 to overcome - there may be a bounce.
Thus, it would be wise for investors and traders to keep their ETC in their wallets until a downtrend is confirmed, which at the moment, is not the case.
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.
Recommended Content
Editors’ Picks
TRON gains 10% in 2024, supply of stablecoins reaches over $50 billion in Q1
TRON, a blockchain-based digital platform, has seen positive growth in the first quarter of 2024, as seen in a Messari report. TRON noted gains across several metrics like market capitalization, revenue and total value locked.
XRP hovers near $0.50 as Ripple CTO addresses concerns related to stablecoin launch
XRP is hovering near $0.53 on Friday, spending nearly all week below $0.55. Ripple CTO David Schwartz addressed concerns on stablecoin and XRP utility on Thursday.
Terraform Labs set to restrict access for users in the US after recent ruling in SEC lawsuit
Blockchain company Terraform Labs said Thursday that it will restrict access to some of its products and services for US-based users as it expects to receive a court order soon in light of its legal battle against the US Securities and Exchange Commission (SEC).
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.