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Ethereum Classic Price Prediction: ETC is dead money under $47

  • Ethereum Classic price correction reaches 80% at yesterday’s low.
  • ETC now below the fierce resistance defined by the 2018 high.
  • Daily Relative Strength Index (RSI) prints the first oversold reading since November 2020.

Ethereum Classic price has collapsed 80% from the May high and 60% from the corrective high on May 26, taking the cryptocurrency below the 2018 high. Now that ETC resides below the 2018 high, it will be challenging to mount a compelling advance in the short term, forcing investors to transit cautiously until a timely entry price can be distinguished from the general level of uncertainty.

Ethereum Classic price has entered a turbulence zone

Ethereum Classic price has suffered a remarkable reversal of fortunes, going from a staggering advance of 1,230% from the March breakout to the May high of $158.76 to an 80% decline in less than two months. In the process, ETC has overwhelmed support at the 50-day simple moving average (SMA), the substantial barrier established by the 2018 high and the 78.6% Fibonacci retracement of the March-May advance at $43.30.

Ethereum Classic price now rests below the 78.6% retracement, a level that halted yesterday’s bounce and today’s rally attempt. Moreover, ETC shows no visible support of note until the 200-day SMA at $28.62, leaving the altcoin exposed to a continuation of the correction and a 27% decline from the current price.

If the cryptocurrency complex pursues lower prices with intensity, Ethereum Classic price may not find unwavering support until the low of the cup base formed in April at $24.74.

ETC/USD daily chart

ETC/USD daily chart

A timely tweet could disrupt the cautious outlook by thrusting Ethereum Classic price above the 2018 high at $46.98, but ETC must close above that level before investors contemplate new positions.  

Interestingly, if Ethereum Classic price does record a daily close above the 2018 high, there is no credible resistance until the 50-day SMA at $72.82, representing a 50% gain. 

To be sure, ETC is currently dead money and shows no signs of getting better at the time of writing. Probabilities still favor lower prices and some form of panic sell-off that will be matched by a spike in volume, something that still has not occurred.

It will take a decisive return of fortune for Ethereum Classic price to resolve the massive resistance established by the 2018 high, thereby supporting a cautious approach in the interim.

Author

Sheldon McIntyre, CMT

Sheldon McIntyre, CMT

Independent Analyst

Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.

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