Ethereum Classic Price Prediction: ETC seems overextended, 40% crash incoming

Ethereum Classic price has surged 17% in the past 24 hours, slicing through the supply zone’s upper limit at $80.
The MRI has flashed a sell signal on the six-hour chart, indicating a sell-off might occur shortly.
ETC could drop 27% to the support level at $59.44, roughly 40% to $46.48.

Ethereum Classic price has witnessed a stellar rally that has propelled it close to pre-crash levels. However, a technical indicator is suggesting that ETC might be due for a reversal.

Ethereum Classic price at crossroads

Ethereum Classic price is currently hovering above the supply zone that extends from $59.44 to $80. A decisive six-our close above $80 is a bullish signal, no doubt, but the Momentum Reversal Indicator (MRI) has flashed a reversal sign in the form of a red ‘one’ candlestick.

This technical setup indicates that the rally has reached its peak and that a one-to-four candlestick correction might ensue.

Therefore, investors need to exercise caution as ETC sits at this critical level. The likely course of action after a 109% rally since May 19 is for the buyers to book profits. If this were to happen, Ethereum Classic price would slide under the mentioned supply zone, delaying the upswing.

Under these circumstances, a potential spike in selling pressure could push ETC down by 27% to the support level at $59.44. If the sellers continue to persist despite this drop, Ethereum Classic price will head to $46.48, which is nearly 43% from the current level ($81.41 at the time of writing).

ETC/USDT 6-hour chart

Regardless of the bearish signals, if the buying pressure continues to build up and pushes Ethereum Classic price above $95.67, it would form a higher high, signaling the possible start of an upswing.

In that case, ETC could rally nearly 20% to tag the subsequent resistance level at $114.49.

Share: Cryptos feed

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.