- Ethereum Classic hold above short term $6.75 support as consolidation lingers.
- The immediate upside is capped by the resistance at $7.00 formed by both the 50 SMA and the 200 SMA.
Since August started, Ethereum Classic held above the 23.6% Fibonacci level taken between the last drop from $8.32 to a swing low at $5.925 around $6.50. The price action over the last three weeks has been impressive. ETC started with a monthly high at $8.25 following a continuation of July’s bullish action. However, it become difficult to keep up with the uptrend amid advances from the bears.
Reversal from the monthly high ($8.25) found support at $6.50. ETC/USD bounced off the support and took down a number of barriers towards $8.00. However, no progress was made beyond $7.75.
Increasing bearish grip due to the seller congestion at $7.75 forced ETC down the same painful path to the support at $6.50. At the time of writing, ETH has recovered slightly to trade at $6.80. The price has remained pivotal at the 38.2% Fibonacci level since the weekend session.
Price action towards the north is limited by a confluence resistance formed by the 50 SMA and the 100 SMA in the zone at $7.00. The sideways trading is reinforced by the horizontally moving RSI. Similarly, the MACD has slowed down the momentum under the mean line despite recovery from -0.113. If the ongoing leveling motion remains unchanged, we can expect consolidation to take precedence in the coming sessions.
However, a break under the short term support at $6.75 would open the door for losses that could retest $6.50 (primary support). This means that buyers have an uphill task to not only defend $6.75 support but also pull ETC above $7.00.
ETC/USD 4-hour chart
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