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Ethereum Classic Price Prediction: Sell signals amid market turmoil

  • Ethereum Classic is down 2% from the start of the week.
  • ETC could move towards $18.10 if market conditions persist.
  • Invalidation of the bearish thesis would come from a breach above the previous week's high at $23.35.

Ethereum Classic could be headed for a stronger decline in the days to come. Key levels have been defined to gauge the potential landing zone for the ETC price.

"Ethereum Classic price showing bearish cues "

Ethereum price is prompting investors to press sell, as the digital asset has produced stair-stepping price action to the downside since the start of the week. While other cryptocurrencies have suffered much larger declines, Ethereum Classic's 2% loss is relatively less. Still, the ETC its price could follow suit and decline in the coming days.

Ethereum Classic is currently trading at $20.68. The bearish sentiment towards Ethereum Classic is evident, as the 8-day exponential moving average and 21-day simple moving average collide while the price remains suppressed. This suggests that the winter rally, which began in December near $14.81, is subject to a reversal. 

A Fibonacci retracement tool shows the winter rally from $14.81 to the year-to-date high at $25.04, shows the 61.8% Fibonacci level at $18.10, potentially being a high-probability bearish target zone if the market continues heading south. The bearish scenario would create the potential for a 12% decline from Ethereum Classic's current market value.

tm/etc/2/13/22

ETC/USDT 1-Day Chart

Invalidation of the bearish thesis would arise from a hurdle above the previous week's high at $23.35. In doing so, the bulls could prompt a rally toward the $25 liquidity zone resulting in a 20% increase from ETC's current market value.


 

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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