Ethereum Classic price tops out with a 15% correction likely underway for ETC

• Ethereum Classic price made a 70% run before profit taking kicked in, with buyer exhaustion suggesting a top out.
• ETC could pull back 15% to find support at $24.78, marked by the most important Fibonacci level of 61.8%.
• The bearish outlook will be invalidated if the price records a higher high, clearing the $32.29.

Ethereum Classic (ETC) price is among the biggest gainers, benefitting the most from the spot Bitcoin exchange-traded funds (ETFs) approval. The capital rotation from BTC to altcoins has favored some projects more than others, with ETC presenting among the biggest beneficiaries.  

Also Read: Spot BTC ETFs trading volumes approach $5 billion in day one of trading after SEC approvals

Ethereum Classic price eyes 15% crash after massive rally

Ethereum Classic (ETC) price skyrocketed almost 75% since January 8, clearing multi-month blockades to reclaim levels last tested in September 2022. In the aftermath of ETC being massively overbought, a correction may be underway that could see token holders lose 15% of the ground covered.

The position of the Relative Strength Index (RSI) at 76 confirms the overbought outlook, precipitating a correction. Also, the price has broken past the upper band of the Bollinger indicator in a move that often precedes a pullback as the price has climbed too much.

This is based on the concept of mean reversion of the price, which assumes that the price deviating substantially from the mean or average, causes it to eventually revert back to the mean price.

Accordingly, the Ethereum Classic price could pull south, falling below the 78.6% Fibonacci level at $28.10. An extended fall could see the altcoin descend below the upper band of the Bollinger indicator at $26.33 to test the most important Fibonacci level, 61.8% at $24.78.

In the dire case, the Ethereum Classic price could fall below the 50% Fibonacci level, not only invalidating the prevailing bullish outlook but also testing the centerline of the Bollinger indicator at $21.91. This level failing to hold as support would send the altcoin to the depths of the 38.2% Fibonacci level at $20.11, or worse, the 23.6% retracement at $17.22.

ETC/USDT 1-day chart

On the other hand, considering the Awesome Oscillator (AO) has restored above the midline, turning positive with green histogram bars, the bulls are also at play, which could bode well for Ethereum Classic price.

Increased participation among the bulls could see Ethereum Classic price extend north, filling the market range and recording a higher high above $32.29. A decisive candlestick close above this level would invalidate the bearish thesis.

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