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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.

Author

John Isige

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

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