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Ethereum Classic Price Prediction: Six months of downtrend with no end in sight

  • Ethereum Classic price lost 22% of market value in December.
  • ETC has produced six consecutive months of downtrend price action.
  • A sweep-the-lows event targeting $12 is within reach and may require several weeks to invalidate the bearish outlook.

Ethereum Classic price continues to decline after several months of bearish force. Key levels have been identified to forecast ETC's next probable market move.

Ethereum Classic price under a strong bearish influence

Ethereum Classic price has been overwhelmingly bearish as the bears have produced six months of downtrend price action. The six-month slope that began in August 2022 took 60% of market value from the hands of long-term investors. December was no different as the ETC witnessed its strongest decline, a 22% loss since the start of the month.

Ethereum Classic price currently auctions at $15.90. The bulls are stifled by the bearish pressure as volume remains relatively low. The 8-day exponential moving average and 21-day simple moving average hover above the current auctioning price, confirming  ETC is in a downtrend. If market conditions persist, the $12.47 lows established on June 18 could be challenged. The ETC price would decline by another 22% as a result of the bearish scenario.

Traders should be wary of entering the market for any countertrend trades. On smaller time frames, the ETC price could continue to bounce back and forth between the aforementioned moving average indicators before the anticipated liquidation event occurs. 

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ETC/USDT 1-Month Chart

Invalidation of the bearish thesis requires more time. A doji candlestick or bullish r candlestick into the $19 zone would need to be established to invalidate the monthly downtrend. 

If the scenario occurs, ETC could begin a countertrend rally toward the midway point of the six-month decline. The first target would be in the $24 region, resulting in a 50% increase from the current Ethereum Classic price. 

This video details how Bitcoin price moves could affect Ethereum Classic price

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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