Ethereum Classic Price Forecast: ETC prepares for pullback
- Ethereum Classic price faces multiple resistance levels, keeping it from climbing higher.
- The MRI has printed a preemptive top signal, suggesting a reversal might arrive shortly.
- A breakdown of the demand zone’s lower boundary at $48.82 will kick-start an ETC bearish run.
Etheruem Classic price seems to be losing steam as multiple resistance barriers stand against it. To make matters worse for the bulls, ETC could continue its descent since a key technical indicator has flashed a warning sign.
Ethereum Classic price at an inflection point
Ethereum Classic price has seen a steady 20% climb after a bounce from the 50% Fibonacci retracement level at $60.13 on May 30. This rally suddenly faced a headwind from the 50 four-hour Simple Moving Average (SMA) at $70.48, failing to cross above it.
Moreover, the 100 four-hour SMA has slipped below the 200 four-hour SMA, forming a bearish crossover. Such a move indicates that the short-term selling momentum is increasing faster, which is a bearish sign.
Dealing the final blow to the bull run is the Momentum Reversal Indicator (MRI), which has flashed a preemptive top in the form of a yellow down arrow on the 4-hour chart. This means that if Ethereum Classic price continues to rally, a sell signal in the form of a red ‘one’ candlestick will be set up.
This technical formation forecasts a one-to-four candlestick correction. Therefore, investors need to be wary of Ethereum Classic price, which is at an inflection point.
The sellers will likely push ETC down by 11% to tag the 50% Fibonacci retracement level at $60.128.
If the buyers rescue the altcoin there, an uptrend will evolve, but the drop is likely to continue until Ethereum Classic price dips into the demand zone ranging from $48.88 to $54.31.
ETC/USD 4-hour chart
There is a high possibility that the buying pressure will replenish in this demand zone, allowing the bulls to gather some steam back. A bullish impulse would push ETC by 47% to the swing high at $80.26, coinciding with the 200 four-hour SMA.
Regardless of any buying pressure, if the bears push Ethereum Classic price to produce a solid 4-hour candlestick close below $48.82, this would invalidate any bullish narrative.
Under these dire circumstances, ETC could slide 6% to the immediate support at $45.81.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
