Forecasting a 36% meltdown in Ethereum Classic price

Ethereum Classic price is on the verge of extending its two-month retracement to $15.00.
Multiple sell signals rule out an immediate rebound for ETC price.
Traders can consider $19.50 and $15.00 as potential take profit targets.

Ethereum Classic price selloff woes seem far from over and may even escalate if support at $23.50 breaks. The original Ethereum blockchain token has not been able to circumvent declines after peaking at $45.82 a few weeks after the Merge software upgrade.

For about four weeks, ETC price enjoyed the attention of miners exiting the Ethereum blockchain (before the transition to become a proof-of-stake consensus token) for alternative proof-of-work mining protocols.

Ethereum Classic price is at a crucial juncture

All eyes are fixated on the Ethereum price’s ability to hold onto the support, highlighted at $23.50 firmly. If it can respect this demand zone, short sellers can forget about ETC price, prolonging the down leg 36.20% below the breakout point to $15.00.

ETC/USD 12-hour chart

With the 50-day SMA (Simple Moving Average), red, crossing below the 200-day SMA, purple, further declines are imminent. Ethereum Classic price is yet to come out of a sell signal presented on September 16 by the MarketGod indicator. Traders using this indicator have the freedom to modify – and develop trading strategies.

The lack of solid support below $23.50 increases the risk of ETC price sliding to $15.00. If push comes to shove, investors should expect the price to tag June lows at $13.50.

ETC/USD 12-hour chart

The Ichimoku Cloud indicator on the same four-hour reinforces the bearish grip on Ethereum Classic price. As long ETC stays below the ‘cloud,’ overhead pressure will mount on Ethereum Classic price. The Ichimoku Cloud also shows areas of support and resistance. Now, Ethereum Classic price will likely prolong the downtrend, with the $15.00 support level being within reach.

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.