- Ethereum Classic price crashed nearly 30% as the cryptocurrency market entered a selling spree.
- A combination of the 100 SMA at $75.45 and a support barrier stretching from $72.31 to $81.67 provided a base for Wednesday’s crash.
- The downtrend scenario will go extinct if ETC produces a decisive close above $114.50.
Ethereum Classic price shows a quick run-up after a nasty crash in Wednesday’s trading session. ETC needs to climb past the demand levels and create a higher high to signal the start of a new uptrend.
Ethereum Classic gains in jeopardy
Ethereum Classic price has dropped a whopping 30% since May 7, undoing most of its gains as it created lower highs and lower lows, a classic sign of a downtrend. During this crash, ETC sliced through the immediate demand zone that extends from $86.27 to $99.50 and found a stable base as it pierced the next support area, ranging from $72.31 to $81.67.
Interestingly, the 100 four-hour Simple Moving Average (SMA) at $75.45 was pivotal in shouldering the downfall. Buyers scooped up Ethereum Classic at a discounted price, which has resulted in a 21% upswing so far.
Although the current setup for ETC price is bearish, investors can expect it to rally 20% to $110, coinciding with the 50 SMA. A decisive 4-hour candlestick close above $114.50 will signal an uptrend’s start. In such a case, ETC could surge another 12% to tag the swing high at $128.40.
ETC/USDT 4-hour chart
Until Ethereum Classic price closes above $114.50, market participants should consider it in a downtrend. The inability of buyers to push ETC beyond the level mentioned above will most likely result in a retest of the 100 SMA at $75.45.
A breakdown of that support will be extremely bearish and could trigger a 30% freefall to the 200 SMA at $52.31.
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.