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Ethereum Classic price to suffer 30% free fall after ETC loses support

  • Ethereum Classic price looks to be stuck in a bull trap. 
  • The ETC downtrend spells more devaluation to come.  
  • Without many supportive elements in the way, the price in ETC could dip to $32.90.

Ethereum Classic (ETC) price reaction is still stuck in a downtrend as an attempt from bulls to break out of the trend is being met with heavy selling. Price action is reversing back to the downside as buyers are tumbling over one another to get some profit locked in. On the downside, there is not much toward $32.90 as a profit level for those short positions in ETC.

Ethereum Classic bears have the trend on their side to shoot down every bull in sight

Ethereum Classic price action is showing some painful unfolding for bulls that have tried to break out of the downtrend dictating price action in ETC for almost two weeks now. Buyers entered a bit wildly into ETC and caught a falling knife around $45. As price action regained some upside toward $50, it now looks as if that upside is becoming a trap for the bulls around $52. Bulls are incapable of pushing prices in ETC beyond that point and look to be stuck now with their profits. As they start to tumble over each other to lock in those profits, price is collapsing as well, and a squeeze against the bulls is in full effect. 

ETC price is collapsing back to $45, and with the downtrend very much still intact, sellers will have used the $52 handle as an entry point to add even more volume to their short positions. The next leg lower will be below $50.

ETC/USD daily chart

ETC/USD daily chart

With few major obstacles in the way of Ethereum Classic bears, expect a dip toward $33, where sellers certainly will be met with some heavy buying. Around $33 is not only the monthly S2 support level but also a historical level that has held the rally in check at least twice in the past summer. 

In case buyers would buy in again on a random point, expect more buyers to come in solely when $52 is broken to the upside and price action manages to stay above there. The next leg up would be toward $60 in Ethereum Classic price.




 


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Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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