This is what will happen if Ethereum Classic price obliterates support at $22


  • Ethereum Classic price solidifies support at $22.00 in the wake of declines from its August peak at $45.81.
  • If ETC price does not bottom out at $22.00, investors should acclimatize to another dip to $13.00.
  • A decline in network activity condemns Ethereum Classic price to a momentum deficiency, unable to sustain its recovery move.

Ethereum Classic price is dealing with an intense tug of war between the bulls and bears. The price could go either up if bulls hold the fort or down to $13.00 if selling intensifies. ETC price must carefully navigate this seemingly untradeable market in a bid to prevent its return to June lows at $13.00.

Ethereum Classic price hold at a critical juncture

Following the Merge-driven rally that saw Ethereum Classic price triple its value between mid-July and mid-August, a consolidation period took center stage, resting on top of the buyer congestion at $30.00.

However, as investors sold, to profit from the Merge news, Ethereum Classic price was overwhelmed by a strong overhead cloud. The solid support at $30.00 bowed price down toward the end of September, leaving bulls with no choice but to seek refuge at $22.00.

ETC/USD daily chart

ETC/USD daily chart

The area around $22.00 is ETC’s main inflection point. Ethereum Classic could respect it as strong support and ignited a trend reversal targeting its August high at $45.81. On the other hand, sellers could eke out another field day by pushing the price to tag the primary support at $13.00.

It is worth mentioning that bears currently have the upper hand. The daily chart places Ethereum Classic below all the three applied moving averages – the 50-day SMA (Simple Moving Average), red, at $29.73; the 100-day SMA, blue, at $31.21 and the 200-day SMA, purple, holding at $27.73.

Furthermore, the 50-day SMA recently crossed below the 200-day SMA at $29.63, bringing the death cross pattern into play. A death cross is a highly bearish index often used to confirm the continuation of a downtrend.

The MACD (Moving Average Convergence Divergence) presents another interesting perspective as it moves horizontally at -1.95, whereby Ethereum Classic price may remain directionless until the tug of war ends.

Ethereum Classic volume

Ethereum Classic volume

A bearish outcome to $13.00 is highly probable if ETC’s declining on-chain metric is considered. As observed from the chart, Ethereum Classic price has, since late July, been losing ground in tandem with the shrinking volume. Therefore, unless this negative gradient changes into an uptrend, Ethereum Classic will continue suffering at the bears' hands.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Could USDT depeg following recent accusations from Consumers' Research?

Could USDT depeg following recent accusations from Consumers' Research?

A digital billboard accusing Tether of corruption was featured in Times Square. Historically, stablecoins often depeg following controversies surrounding respective parent companies. Tether recently launched a new synthetic dollar backed by gold.

More Cryptocurrencies News

Ethereum Layer 1 and 2 monthly active users surpass 25 million milestone amidst crypto bloodbath

Ethereum Layer 1 and 2 monthly active users surpass 25 million milestone amidst crypto bloodbath

Monthly active users on Ethereum chain’s Layer 1 and 2 projects have crossed 25 million per Token Terminal data. Despite the rise of Ethereum’s competitors like Solana, with the meme coin narrative, Ether remains relevant among traders. 

More Ethereum News

ZKsync token faces massive sell-off following launch

ZKsync token faces massive sell-off following launch

A report from Nansen on Tuesday revealed that the top 10,000 wallets that were airdropped ZKsync's newly launched ZK token have begun selling their holdings. The price of ZK has dropped 34.5% since its inception after nearly half of the top wallets that received its airdrop on Monday sold all of their allocation.

More ZKsync News

Global Ethereum ETFs experience surge in net inflows as Hashdex files for combined spot ETH and Bitcoin ETF

Global Ethereum ETFs experience surge in net inflows as Hashdex files for combined spot ETH and Bitcoin ETF

Ethereum is down 3% on Tuesday as Hashdex submitted a market-weighted crypto ETF to the SEC, aiming to track the price of ETH and Bitcoin. Global investors have also increasingly purchased ETH ETFs amid declining exchange reserves.

More Ethereum News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Fed keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP