Ethereum Classic Price Analysis: ETC/USD in a free fall after a failure at $7.4

Ethereum Classic (ETC) is in retreat after a failed attempt to clear an important barrier.
The critical support comes at a 100-day SMA on approach to $6.40.

Ethereum Classic (ETC) faced stiff resistance on approach to $7.40 and retreated below $7.00 amid sharp downside correction. The coin lost nearly 4% of its value in a matter of hours to trade at $6.84 by the time of writing. On a day-to-day basis, the coin is down 4.4%

Ethereum Classic is now the 22nd-largest digital asset with the current market capitalization of $797 billion and an average daily trading volume of $1 billion. The coin is moving in sync with the market, within the short-term bearish trend amid expanding volatility.

ETC/USD: Technical picture

On the daily charts, ETC/USD dropped below critical support created by 200-day SMA on approach to psychological $7.00. This development has worsened the technical picture; however, the move still qualifies as a technical correction as long as the price stays above $6.40. This barrier is created by a combination of 100-day SMA and the middle line of the daily Bollinger Band. If it is broken. the sell-off may be extended to psychological $6.00.

On the upside, the initial resistance is created by the above-mentioned critical barrier of $7.00 reinforced by 200-day SMA. Once it is out of the way, the upside is likely to gain traction with the next focus on the recent high on approach to $7.40

ETC/USD daily chart

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.