- Ethereum Classic price presents key buy signals ahead of a bullish move to $27.30.
- ETC must break above a falling wedge pattern’s upper trend line to confirm a 15% upswing.
- Ethereum Classic price will keep struggling to sustain an uptrend as long as its on-chain volume continues to drop.
Ethereum Classic price continues to sink deeper into the abyss, with declines from its most recent high at $45.66 seemingly unstoppable. The PoW (proof-of-work) token may have lost its charm, with investors pulling the rug immediately after the Ethereum Merge in September.
ETC has annihilated various key support areas at $35.00, $30.00 and $25.00 in its futile hunt for solid support. Ethereum Classic price now depends on near-term buyer congestion at $22.00 to validate a falling wedge pattern ahead of a foreshadowed move to $27.30.
Is Ethereum Classic price ready for a trend reversal?
The Stochastic RSI on the daily chart reveals that Ethereum Classic bulls are in the process of reclaiming control. First, they defended support at $22.00 and later pushed above $23.00 amidst highly oversold conditions.
A falling wedge is a bullish reversal pattern drawn by connecting an asset’s lower highs and lower lows using trend lines. As selling pressure gradually decreases into the pattern’s apex, the price tends to break above the upper level of resistance. A strong trend to the upside starts building as the price breaks above the wedge.
ETC/USD daily chart
Ethereum Classic price will be poised for a 15% bullish recovery if it leaps above the upper trend line resistance. Traders hoping for long positions in ETC will find this a strong buy signal.
The TD Sequential indicator has recently flashed a buy signal on the same daily chart. A red nine candlestick represents the call to buy into ETC while it gears up for a trend reversal. Bear in mind that buy orders are recommended if the low of the sixth and seventh candles is exceeded by that of the eighth and ninth bars in the count; see the chart below.
ETC/USD daily chart
Ethereum Classic seems fundamentally weak for a rally
Ethereum Classic price recovery might be a pipe dream on the other side of the fence, considering the drop in on-chain volume. Apart from minor sporadic spikes, the volume of transactions (335 million) on the Ethereum Classic blockchain is a meager reflection of the 5.47 billion in July 2022.
 [17.19.10, 18 Oct, 2022]-638017047061289963.png)
Ethereum Classic on-chain volume
A careful observation of this metric’s impact on ETC’s performance shows that such an extended drop inhibits price growth. Therefore, Ethereum Classic price may struggle with the expected uptrend. Investors hoping for another run to $45.66 may have to exercise patience as ETC navigates the stubborn bear market forces.
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.
Recommended Content
Editors’ Picks
China coin narrative in play as Coinbase CEO warns of restrictive US crypto policies
Brian Armstrong, CEO and co-founder of cryptocurrency platform Coinbase, shared his thoughts on restrictive US crypto policies in an opinion editorial published by Market Watch on Tuesday.
Ethereum holders pull $1 billion in ETH off exchanges hinting retail-led rally
Ethereum holdings in exchange wallets declined by $1.04 billion between May 8 and May 31. Interestingly, while large wallet investors have shed their Ether holdings, the altcoin got redistributed to addresses with less than 1 ETH.
Dogecoin price action hints DOGE can reverse its bearish trend
Dogecoin (DOGE) price presents a potential for trend reversal provided a certain set of conditions are met. These conditions involve overcoming key hurdles for DOGE bulls and seeing momentum indicators flip bullish on lower time frames.
PEPE price to drop another 15% as altcoin winter is only halfway finished
PEPE price is feeling the frost and cold of the altcoin winter that continues with some notable slides in price valuation in the altcoin space. After price action dropped below $0.0014700, traders must have understood that a turnaround would only occur at a high supportive level.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.