Key Highlights
- Ethereum classic price surged higher and moved above the $20.00 handle before reversing gains against the US Dollar.
- There is a declining channel forming with resistance at $15.50 on the hourly chart of the ETC/USD pair (Data feed via Kraken).
- The pair might continue to decline and it could even test the $13.20 support area.
Ethereum classic price is reversing its gains against the US Dollar and Bitcoin. ETC/USD might soon retest the $13.20-13.00 support area.
Ethereum Classic Price Decline
During the past two days, there was a sharp upside move in ETC price above the $15.00 level against the US Dollar. The price rocketed higher and even traded above the $20.00 handle. A new monthly high was formed at $21.42 from where a sharp decline was initiated. ETC declined and moved below the $18.00 support and the 50% Fib retracement level of the last wave from the $13.00 low to $21.42 high.
The current decline points to a major reversal below $20.00. It seems like there is a declining channel forming with resistance at $15.50 on the hourly chart of the ETC/USD pair. The pair is now below the 76.4% Fib retracement level of the last wave from the $13.00 low to $21.42 high. Therefore, there are high chances of it moving back towards the $13.20 and $13.00 support levels.
The 100 hourly simple moving average is now at $16.00 to act as a resistance. A downside break below $14.00 would ignite more declines in the near term. On the upside, the channel resistance at $15.50 is a major hurdle followed by the 100 hourly SMA. It would be interesting to see how buyers react when the price reaches $13.00.
Hourly MACD – The MACD for ETC/USD is back in the bearish zone.
Hourly RSI – The RSI for ETC/USD is currently near the oversold levels.
Major Support Level – $13.00
Major Resistance Level – $16.00
Charts courtesy – Trading View, Kraken
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.
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