Here's why Ethereum Classic price could drop another 20%

Ethereum Classic price shows a recent sell-off that is in line with the crash in Bitcoin price. This development has flipped a significant support floor into a resistance level, which could soon trigger a set of bearish events.

Ethereum Classic price at a make-or-break point

Ethereum Classic price rallied 240% between July 13 and July 29, setting a range extending from $13.33 to $45.47. This exponential run-up has been on a mean reversion journey since July 29 but has failed to retest the midpoint.

On September 14, the Ethereum Classic price dropped roughly 12% and flipped the $37.65 support floor into a resistance level. This development indicates that the bears are likely going to take over if the bulls do not make a comeback soon.

Investors can expect a pullback that retests the $37.65 hurdle, but if buyers do not step in, sellers are likely to induce a rejection. This is where interested traders can open a short position and capitalize on the next move, which could see Ethereum Classic price revisit the $32.15 support floor.

If this barrier breaks down, the next stop for ETC is the range’s midpoint at $29.40. In total, this development would constitute a 21% crash and is likely where the buyers will step in.

ETC/USDT 6-hour chart

While the bearish outlook makes sense from a macro perspective, the internal structure could flip bullish under certain conditions. If Ethereum Classic price produces a daily candlestick close above the $39.02 hurdle and flips it into a support floor, it will invalidate the bearish thesis.

In such a case, Ethereum Classic price could retest the equal highs at $42.58 and $45.47.