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Ethereum Classic Price Prediction: ETC at risk of falling 20% lower

  • Ethereum Classic price slides below the supportive barrier.
  • ETC is set to eke out more losses as support is further away.
  • If bulls do not defend initial support around $20, ETC could drop to $17.

Ethereum Classic (ETC) price is starting to shift from an uptrend into a downtrend. ETC slid through some important support held during the week at around $20.50 earlier on Friday. The next support comes in around $20 as the monthly pivot. If and when that level gives up, a big selloff could unfold with ETC price set to nosedive toward $17.

Ethereum Classic price could plummet if $20 support is lost

Ethereum Classic price broke below the important 55-day Simple Moving Average (SMA) early on Friday trading. That level held throughout the week as important support while pressure to the downside was building from the firm rejection bulls had received on Wednesday, with a failed break above the 200-day SMA. Big risk comes from the monthly pivot that is nearly at $20 providing support and has nothing nearby to catch any brief overspills.

ETC needs bulls thus to step up their game and defend that $20 level in order not to create a systemic risk. If bulls do not want to get involved, ETC is bound to trade lower with a sharp nosedive move towards $17. That is the monthly S1 support, which should step in and catch the falling knife with a 20% loss in the books.

ETC/USD  4H-chart    

ETC/USD  4H-chart    

Plenty of markets are closed today for ‘Good Friday,’ so some thin liquidity moves could play out. It could well be that price action quickly jumps back up above the 55-day SMA and heads back to $21.50 for another test of the 200-day SMA. Do not expect for that level to break that quickly, as an additional tailwind or catalyst is needed to do so. 

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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