- Ethereum Classic price has risen by 38% since the start of the year.
- ETC could retest the $16 zone resulting in a 20% downswing.
- A breach above $25 would invalidate the bearish thesis.
Ethereum Classic price has cultivated a new narrative as the bulls produced a massive 25% influx on January 4. The upswing was the largest daily gainer for ETC since July 16's 31% rise, bringing a feeling of bullish nostalgia back into the market sentiment.
Ethereum Classic price takes the market by surprise
Ethereum Classic price currently auctions at $20.16. The recent surge has halted just beneath October's broken support zone, which aided a 20% rally between October 21 and November 6. From a classical technical analysis perspective, the recent uptrend hike looks like a retest into previous support. The imagery is commonly displayed before sharp sell-offs occur.
Still, calling for a bearish reversal at the top of a newly established counter trend would be ill-advised. Time is required to determine whether the ETC price is the start of a much larger move or not. If the price can remain above the 8-day exponential moving average at $19, the next bullish trade will likely retest liquidity above the current pivot level near $22. ETC will rally by 10% if the bullish scenario occurs.
ETC/USDT 1-Day Chart
On the contrary, If the bears fail to hold support from the 8-day exponential moving average at $19, a cascade of selling could ultimately be triggered. The bears would likely challenge the $16 liquidity zone. The aforementioned price level is a vital area of liquidity that has remained untested since the initial stages of the recent 38% rally.
Invalidation of the downtrend thesis would be a breach above the $25 candlestick that tore October’s support zone. The Ethereum Classic price would increase by 20% if the bulls were successful.
This video details how Bitcoin price moves could affect Ethereum Classic price
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.
Recommended Content
Editors’ Picks
Shiba Inu price stagnancy brings investors’ losses to a 28-month high
Shiba Inu has been rather dormant these past four weeks, which is bearing a negative impact on the investors. The meme coin market has been struggling to make headlines as the lack of increase in altcoin’s market value has left investors in peril, which is now driving them to pull back and wait until SHIB starts rising again.
LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier
Lido DAO price is up over the past day as the market shifted its stance despite the SEC announcing a delay in the spot Bitcoin ETF applications of BlackRock among other applicants. However, this one-day rise is not enough for the likes of LDO that have been failing in recovering for a few weeks now.
THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range
THORChain is testing a crucial multi-month obstacle after a remarkable climb. The move has completed the altcoin’s recovery rally following the 15% fall of September 27. RUNE has outperformed the broader market, with Bitcoin and Ethereum recording only up to 3% in daily gains.
Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability
Chainlink put itself on the map with the help of its real-time data-feeding Oracles and is now in the spotlight for its interoperability protocol. Through this protocol, the blockchain project intends to not only connect two or five chains but also create the world’s largest liquidity layer, starting with Australia’s second-largest bank.
Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why
Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.