- The favorable tailwind in cryptocurrencies is rolling over toward a negative headwind.
- ETC is in a technical bearish pattern.
- A break lower could wipe out 20% of its value in just a matter of days.
Ethereum Classic (ETC) is not doing so great these past few days or even two weeks for that matter. After buyers tried to attack $80, price action faded lower, and ETC fell into a bearish triangle.
The triangle got formed on August 15 with the last moment when buyers were very much in control. Price action got reversed aggressively the day after. Since then, ETC tested that descending black trend line three times – which makes it a real force to be reckoned with.
A bearish triangle is the main focus
The flat orange line at $59.70 is doing its best to uphold the price action for the base, but that level looks relatively weak as the only real historical value is originating from August 19. The completion of the triangle is being helped with the rollover from the favorable tailwind in cryptocurrencies, which has now turned into a negative headwind. Overall, the general sentiment is starting to sour in global markets in light of Jackson Hole tomorrow. A possible taper announcement from the Federal Reserve is spooking the equity markets, although they have recently made new all-time highs.
ETC/USD daily chart
Expect a grind lower with the base at $59.70 not holding for long. Further down, there is the 55-daily Simple Moving Average (SMA). That SMA is not really ample support, so the first real support is the red line together with the monthly pivot around $48-$50.
Expect a big move lower and more pressure to the downside if the general theme in cryptocurrencies gets even more sour.
If sentiment clears up, expect a break of the black descending trend line of the triangle. That will be the queue for buyers to get back in and retry a stab at $80.
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.