|

Ethereum Classic setup for major crash, ETC bulls led to slaughter

  • Ethereum Classic price drop could hit $34.
  • Triple-bottom breakout is the trigger for a monster drop.
  • Very few bullish conditions ahead.

Ethereum Classic price has made little progress over the past week. It has traded higher and back into the Cloud on the daily Ichimoku chart, but it remains lower and faces significant resistance ahead. 

Ethereum Classic price faces -35% drop, watch out below $53

Ethereum Classic price faces some substantial pressure soon. If a new column of Os forms on the $1/3-box reversal Point and Figure chart, bull and bears will want to watch for a return to $54. A return to $54 would form a triple-bottom. The next O below that at $53 triggers the short entry zone.
A Fibonacci expansion drawn from the most recent swing high at $76 to last week's flash crash low at $49 puts the 100% Fibonacci extension at $34. A high volume node in the volume profile exists at $34, so bulls may enter that zone to support Etherem Classic Price.

ETC/USD $1.00/3-box Reversal Point and Figure Chart

Bulls have a hard road ahead if they want to return to a sold bull market.

First, Ethereum Classic price needs to move through the Cloud and break out above the Tenkan-Sen at $60.81, the Kijun-Sen at $62.56 and the top of the Cloud (Senkou Span A) at $64.66. However, the Chikou Span needs to be above the candlesticks. For the Chikou Span to return above the candlesticks, bulls need to push Ethereum Classic above the $70 value area and close at or above $70.

Unfortunately, bulls may have to wait, given the present market conditions and very bearish setup on the daily candlestick chart and Point and Figure chart. 

Author

Jonathan Morgan

Jonathan Morgan

Independent Analyst

Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.

More from Jonathan Morgan
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Ripple faces persistent bear risks, shrugging off ETF inflows

Ripple is extending its decline for the second consecutive day, trading at $2.06 at the time of writing on Friday. Sentiment surrounding the cross-border remittance token continues to lag despite steady inflows into XRP spot ETFs. 

Luna Classic soars 20% as Do Kwon's sentence hearing looms

Luna Classic surges 20% on Friday, extending its recovery for the fourth consecutive day. Roughly 959 million tokens have been burned in December so far, fueling LUNC's recovery.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000. 

Ethereum strengthens against BTC post-Fusaka, targeting $3,200 breakout

Ethereum trades above $3,100 on Friday, with bulls aiming for a breakout above a two-month-old resistance trendline. Ethereum gains strength against Bitcoin as demand for the major altcoin increases after the Fusaka upgrade.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000.