Ethereum Classic (ETC) price analysis: is it time to buy the dip?
Ethereum Classic could attempt a recovery in the next few days
- Ethereum Classic technical analysis: weekly chart
- Ethereum Classic technical analysis: daily chart
- Ethereum Classic: Buy or sell at current levels?
Ethereum Classic has been correcting for the past few days as the overall crypto sentiment has turned bearish. The bulls are attempting to arrest the decline as of 12 April 2022.
ETC had recently run up on hopes that Ethereum miners may gravitate to Ethereum Classic, as it plans to retain the proof-of-work consensus mechanism. However, the recent decline in Bitcoin may have tempted traders to book profits, which has pulled the price lower.
Could lower levels attract buying from the bulls? Could ETC go up further? Read the ETC price analysis to find out what the charts suggest.
Ethereum Classic technical analysis: weekly chart
ETC’s price witnessed a sharp rally which took the ETC/USD pair from about $25 to $50 in a short time. Generally, vertical rallies are not sustainable, and they tend to be followed by sharp declines.
The pair remains in a downtrend, but the bulls are attempting to form a higher low and signal a potential trend change. The relative strength index (RSI) is near the midpoint indicating a balance between supply and demand.
If the price continues lower and dips to the $25 support, it will suggest that the recent rise near $50 was a bear market rally. A break and close below $25 could open the doors for a further decline to $10.
Contrary to this assumption, if the price turns up from the current level and breaks above the psychological level at $50, it will suggest the start of a new uptrend. The pair could then attempt a rally toward the critical resistance at $75.
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Ethereum Classic technical analysis: daily chart
ETC’s price has been in a corrective phase since hitting the psychological level at $50. The pair has dropped to the 50% Fibonacci retracement level at $37.50, which is likely to act as a strong support. But if this support cracks, the next stop could be the 61.8% retracement level of $34.55.
If the price rebounds off this support zone, the buyers will again attempt to push the price toward $50. On the way up, the bulls are likely to face a stiff hurdle at $44. The buyers will have to propel and sustain the price above $50 to indicate the resumption of the upward move.
The pair could then rally to $60, where the bears are expected to mount a strong defence. A break and close above this resistance could open the doors for a possible rally to $75.
Conversely, if the price continues lower and breaks below $34.55, the selling could intensify further. The pair may then drop to the 78.6% retracement level at $30.35 and later complete a 100% retracement by declining to $25.
Ethereum Classic: Buy or sell at current levels?
Ethereum Classic’s price analysis suggests that the pair is correcting the sharp rally of the past few days. If the bulls want to resume the upward move, they will have to try and arrest the decline in the zone between $37.50 and $34.55. If that happens, the pair could rise to $44. On the other hand, if the price slips below $34.55, the selling could accelerate, and the pair may drop to $30.35.
Whatever the outcome might be, your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you are about losing money. This analysis does not constitute investment advice. It’s important to make your own analysis before deciding to invest. You should never invest more than you can afford to lose.