- Ethereum Classic jumped up to $62.67 on Wednesday before starting to fade.
- The profit-taking is being seen in all major cryptocurrencies as well.
- On the downside, we have a few supports that will keep ETC around $46.
Ethereum Classic price dipped lower today and looks to fade after the uptrend that lasted five consecutive days, reaching a high of $62.67 on Wednesday.
Ethereum Classic price has a bandwidth of 25%
Ethereum Classic's steep climb in May was maybe just a bit too violent and deserved a correction after many indicators pointed to an overbought condition. The fade ETC saw in May and June made it test twice the support at $32.90.
ETC recovered and was able to get out of a bearish pattern with a break to the upside of the descending trendline on June 29.
Ethereum Classic price has proven that it still has the potential to go higher. However, it recently saw a rejection of the $62 level, which might show that further upside is limited. A target of $68 would be excellent, but we see profit-taking today in all major cryptocurrencies. Hence, the upside looks limited for the rest of the week.
The general sentiment should nonetheless help. It is a bit contradictory that we do not see this translated to ETC catching a bid and going for the $68 price target. With the 55-day Simple Moving Average (SMA) and a nearby 23.8% Fibonacci level, this looks like a solid resistance level. It should be tempting for buyers to run the price up toward that level.
On the downside, the break of the descending trend line exposed a short-term floor around $46. Ethereum Classic price shot through this resistance and has not come back since. Sellers will look to target this level for profit-taking on their shorts.
ETC/USD daily chart
To summarize, we see in ETC both buyers and sellers awaiting a break, either way, to jump on the opportunity. This will keep Ethereum Classic price within the bandwidth between $62 to the upside and $46 to the downside. Should we break either boundary, look for $68 with the Fibonacci level and the 55-day SMA as guardians for the resistance.
On the flip side, if the $62 level breaks, we can see a retest of the $32.90 level, with the 200-day SMA and the double bottom as support.
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
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.