Ethereum Classic Price Prediction: Sell signals amid market turmoil
|- Ethereum Classic is down 2% from the start of the week.
- ETC could move towards $18.10 if market conditions persist.
- Invalidation of the bearish thesis would come from a breach above the previous week's high at $23.35.
Ethereum Classic could be headed for a stronger decline in the days to come. Key levels have been defined to gauge the potential landing zone for the ETC price.
"Ethereum Classic price showing bearish cues "
Ethereum price is prompting investors to press sell, as the digital asset has produced stair-stepping price action to the downside since the start of the week. While other cryptocurrencies have suffered much larger declines, Ethereum Classic's 2% loss is relatively less. Still, the ETC its price could follow suit and decline in the coming days.
Ethereum Classic is currently trading at $20.68. The bearish sentiment towards Ethereum Classic is evident, as the 8-day exponential moving average and 21-day simple moving average collide while the price remains suppressed. This suggests that the winter rally, which began in December near $14.81, is subject to a reversal.
A Fibonacci retracement tool shows the winter rally from $14.81 to the year-to-date high at $25.04, shows the 61.8% Fibonacci level at $18.10, potentially being a high-probability bearish target zone if the market continues heading south. The bearish scenario would create the potential for a 12% decline from Ethereum Classic's current market value.
Invalidation of the bearish thesis would arise from a hurdle above the previous week's high at $23.35. In doing so, the bulls could prompt a rally toward the $25 liquidity zone resulting in a 20% increase from ETC's current market value.
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.