- Ethereum Classic price displays a lack of bullish momentum as it consolidates below $96.94.
- A 15% pullback to the immediate demand zone that ranges from $72.23 to $79.37 seems likely.
- ETC will face a make-or-break point around this support barrier.
Ethereum Classic price seems to have hit a dead end as the buying pressure vanishes while sell signals pop up.
Ethereum Classic price needs to cool off
Ethereum Classic price favors the sellers on the daily chart, as the Momentum Reversal Indicator (MRI) has flashed a sell signal in the form of a red ‘one’ candlestick on May 5. This setup forecasts a one-to-four candlestick correction.
Although the bulls have set up a new all-time high on Thursday, investors should expect a short-term pullback.
The development of candlesticks with tiny bodies in lockstep on the 4-hour chart adds credence to the bearish scenario explained above. Such a formation indicates a tussle between the buyers and sellers and suggests that the bullish momentum has dried up.
A failure to push past the 127.2% Fibonacci retracement level at $96.94 will lead to a 15% retracement to the demand zone that stretches from $72.23 to $79.37.
This move will allow the short-term sellers to go extinct, allowing buyers to take ETC on another exponential rally to $112.74, which is a 42% upswing from the support barrier’s upper layer.
If this upswing continues, ETC might also tag the 161.8% Fibonacci extension level at $140.05.
ETC/USD 1-day, 4-hour chart
The short-term scenario for Ethereum Classic price seems to be bearish, but if bulls come to the rescue, ETC could retest its all-time high and even surge past it.
However, a breakdown of $72.23 will trigger a full-blown downtrend that could extend ETC’s descent by another 20% to $57.81, coinciding with the 78.6% Fibonacci retracement level.
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
XRP gains as traders gear up for futures ETFs debut this week
XRP climbs over 3% on Monday, hovering around $2.33 at the time of writing. The rally is likely catalyzed by key market movers like XRP futures Exchange Traded Funds (ETFs) approval by the US financial regulator, the Securities and Exchange Commission (SEC), and a bullish outlook.
Bitcoin Price Forecast: BTC eyes $97,000 as institutional inflow surges $3.06 billion in a week
Bitcoin (BTC) price is stabilizing above $94,000 at the time of writing on Monday, following a 10% rally the previous week. The institutional demand supports a bullish thesis, as US spot Exchange Traded Funds (ETFs) recorded a total inflow of $3.06 billion last week, the highest weekly figure since mid-November.
Ethereum Price Forecast: ETH ETFs post first weekly inflows since February
Ethereum (ETH) recovered the $1,800 price level on Saturday after US spot Ether ETFs (exchange-traded funds) recorded their first weekly inflows since February.
Defi Development Corporation files to offer $1 billion in securities to boost its Solana holdings
Defi Development Corporation (formerly Janover) filed a registration statement with the Securities & Exchange Commission (SEC) on Friday, signaling its intent to offer and sell a wide range of securities, including common and preferred stock, debt instruments and warrants for the purchase of equity
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin (BTC) price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.