• Ethereum Classic price discovers support near 2018 high as selling in the cryptocurrency market accelerates.
  • ETC remains locked in a descending channel that began May 25.
  • Last above-average volume day was the May 19 crash.

Ethereum Classic price has been in a corrective decline since the May 24 bounce, presenting few actionable trading opportunities for investors. The volatility of the last two days reinforces the need to practice patience with the cryptocurrency. Still, it is important to note that ETC could close today with a bullish hammer candlestick pattern on the daily chart.

Ethereum Classic price takes weakness in stride

From the May 6 high at $158.76 until the May 19 low, Ethereum Classic price erased 75% of ETC value, including a one-day drop of 55% on May 19. The ETC volatility was an extraordinary reversal of fortune for investors. Before the correction, Ethereum Classic price had reported a 1,200% advance over the previous six weeks after releasing from a symmetrical triangle. Despite the fluctuations, ETC closed May with a 90% gain.

A bullish outcome of the historic correction and recent drift lower was removing the extreme overbought readings on the daily and weekly Relative Strength Indexes (RSI). It has positioned Ethereum Classic price to achieve a sustainable rally once the broader market uncertainty subsides. 

Ethereum Classic price stabilized today around May’s declining trend line and just above the critical 2018 high at $46.98, a level that played a key role on May 19 and 23. As long as ETC stays above the 2018 high on a daily closing basis, the outlook remains neutral with a bearish tilt.

If ETC fails to hold the above-mentioned level, Ethereum Classic price will discover some support at the 78.6% Fibonacci retracement at $43.03 and then the confluence of the May 19 and 23 lows at $40.00 and $40.20, respectively. A daily close below $40.00 uncovers no meaningful support until the intersection of the 200-day simple moving average (SMA) at $25.16 with the low of April’s cup base at $24.74, a decline that seems remote at this point.

ETC/USD daily chart

ETC/USD daily chart

At the time of writing, Ethereum Classic price could be on course to close with a bullish hammer candlestick pattern. If the digital asset does close today with a hammer candlestick pattern, investors can use the candlestick’s current high at $59.55 as the trigger price to initiate a new position in ETC. The stop would be the low of the candlestick, offering a solid risk-reward opportunity.  

The hammer pattern is best found in a protracted downtrend that is beginning to show increased weakness. Initially, the sellers or the bears attempt to drive the price lower in hammer formation, but buyers emerge, aggressively lifting the price higher, displaying that bulls are now in control.


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.

Recommended content


Recommended Content

Editors’ Picks

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

MAGA trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption.

More Meme Coins News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP