- The 200-day SMA has already crossed over the 100-day SMA in Ethereum Classic’s daily chart to create the bearish cross pattern.
- The MACD shows increasing bearish market momentum.
After reaching a high of $8.35 on August 2, ETC has steadily gone down and reached a low of $5.50 on September 9. Since then, the price shot up to $6.20, encountered resistance at the 200-day SMA ($6.25), and then sort of settled itself around $5.50, as of writing. It looks like the market is currently under the bearish influence.
ETC/USD daily chart
Firstly, the 200-day SA has crossed over the 100-day SMA ($6.23) to chart the bearish cross pattern. Secondly, the MACD shows increasing bearish market momentum. As per the daily confluence detector, there is a healthy support wall at $5.42. A break below this level will take the Ethereum fork down to $5.20. A further break will see the price fall below $5.
ETC daily confluence detector
What adds further credence to our bearish outlook is the number of addresses entering the network. After reaching a peak of 47,000 on October 4 in a three-week trailing average, it has dipped drastically to 989, as of press time. This is a very bearish sign as it’s indicative of an unhealthy network.
ETC daily new addresses
The Flipside: Can the bulls take back control?
Looking at ETC's daily chart, the task for the buyers is pretty straightforward. They will need to quickly flip the 50-day SMA ($5.65) from resistance to support. After they do that, they should gain the momentum required to push the price to $6.25 and cross above the 100-day and 200-day SMAs.
Key Price levels to watch
For the sellers, the key level lies at the $5.20 support line. A break below that will see ETH tumble below $5.
For the buyers, the main obstacle lies at the 50-day SMA ($5.65). Flipping this resistance barrier to a support zone will allow the buyers to inflict more damage.
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.