• Ethereum Classic price loses the critical support at $47.00 after declining -15.7% for the week.
  • The midline of descending parallel channel propping up ETC, generating a brief moment of relative strength.
  • Credible support rests with the 200-day simple moving average (SMA) at $34.11.

Ethereum Classic price is flat on the trading day, while the broader cryptocurrency complex is trading down, with individual losses reaching -11%. It is an interesting point of relative strength, but when a .34% gain is placed in the context of a 35% decline since the June 30 high, it doesn’t represent a trend change. As a result, the ETC price structure remains insecure, with a clear bias for further downside in the coming days.

Ethereum Classic price trying to fool investors, but remain wary

At the May 6 high of $158.76, Ethereum Classic price was a remarkable 377% above the tactically important 50-day SMA, easily besting the previous maximum deviation of 238% in May 2017. On a weekly basis, ETC reached an unprecedented deviation from the 50-week SMA of 900%. The response was an 80% collapse, pushing ETC down to $32.53 on June 22 and a negative deviation from the 50-day SMA of -50%.

ETC/USD weekly chart

ETC/USD weekly chart

Ethereum Classic price matched the 80% decline with a 90% spike, highlighted by a 30.87% gain on June 29 that catapulted ETC back above the critical 2018 high of $46.98. However, the comfort of the 2018 high was disrupted on July 8 with a close below. Since the failure to hold $46.98, Ethereum Classic price has fallen in tandem with the cryptocurrency complex before catching a bid around the midline of the descending parallel channel at $39.21.

The mild bounce over the last three days is strictly corrective and does not interfere with the bearish price structure presented by Ethereum Classic price. The most prominent support is the 200-day SMA at $34.11, equating to an 18% decline from the current price. The next visible and crucial support is the confluence of the June 22 low of $32.53 with the 2020 ascending trend line at $31.90. A failure to hold on a weekly closing basis would be a blow to ETC and put the altcoin on pace to test the lower range of the channel at $26.80, representing a 35% loss from the current price.

ETC/USD daily chart

ETC/USD daily chart

To contemplate higher prices, Ethereum Classic price needs to reclaim the 2018 high of $46.98 on a daily closing basis, not on an intra-day basis. If successful,  the ETC rally will still be aggravated by the 50-day SMA at $52.51, followed by the upper range of the descending parallel channel at $57.50, representing a 20% gain from the 2018 high.

Another upside target of note is the June 30 high of $62.45. 

Ethereum Classic price is trying to fool investors with a hint of relative strength in a market dominated by red. It may compel a few to enter the market, but the faint price strength demonstrates that the midline of the descending parallel channel is not excellent support. Instead, ETC will likely collapse to the 200-day SMA at $34.11, where an impulsive rally can commence.

Here, FXStreet's analysts evaluate where ETC could be heading next.


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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Cardano partners with Chainlink to drive smart contract development for DeFi applications

Cardano recently announced a strategic partnership with decentralized blockchain oracle network Chainlink. The third-generation blockchain is preparing to build smart contracts for decentralized finance (DeFi) applications.

More Cardano news

Huobi to stop servicing Chinese users as China vows strict crackdown on crypto

A few months after the cryptocurrency mining ban in China, the country issued another update last week, reiterating that digital assets are banned and crypto exchanges are prohibited. Shortly after the announcement was revealed, Bitcoin and altcoins plunged.

More Cryptocurrencies news

Ethereum bears contemplate a drop to $2450

ETH price is building up downside pressure while clinging to the 200-SMA support. RSI remains flat below the midline, keeping the sellers cheerful. A drop towards $2450 remains in the offing if the 200-SMA caves in.

More Ethereum News

Polkadot price at make-or-break point

Polkadot price spots a potential symmetric triangle pattern on the 1D chart. RSI stands neutral at 50.00, suggesting a lack of clear directional bias. 21-DMA offers immediate resistance.

More Polkadot News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast