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Is a 75% decline still possible for the Ethereum Classic price?

  • Ethereum Classic price continues to display strength in the market based on volume.
  • ETC has failed previously despite showing similar bullish technicals.
  • Invalidation of the uptrend is dependent on $13 holding as support. 

Ethereum Classic price is conflicting

Ethereum Classic price rallied 100% between July 12 and July 24 before a short consolidation unfolded. After a few shallow days of sideways congestion, the Ethereum Classic price kicked off another 90% rally.

Ethereum Classic price tends to consolidate under low volume propelling higher. The Relative Strength Index shows a bearish divergence between highs established in March 2022 at $48 and the recent August highs near $39. During March, the Volume Profile indicator displayed a classical uptick in volume just like it is currently displaying. Still, ultimately the bulls lost momentum and a sweep-the-lows event occurred days after. 

Ethereum Classic price currently auctions at $36.81. Although short-term bullish targets reside at $48, $50 and $60, investors should be aware of the history of Ethereum Classic price as it tends to diverge from classical style price action methods. A sweep-the-lows event will remain on the cards until the RSI finds balance and reconquers oversold territory.

tm/etc/8/9/22

ETC/USDT 3-Day Chart

Thus, it is best to think of the Ethereum Classic price as a short-term liquid asset instead of a coin to faithfully hodl. Early evidence of a sweep-the-lows event targeting will be a breach of $18.90. If the bulls lose ground at this level, $13 and potentially $8 will be on the cards, resulting in up to a 75% decrease from the current Ethereum Classic price.

In the following video, our analysts deep dive into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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