Ethereum Classic Price Analysis: ETC approaching a turning point, needs support to turn

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TL;DR Breakdown

  • Ethereum Classic price analysis highlights ETC’s resistance at the $61 resistance level.
  • A decisive close above the resistance level could activate a 15 percent surge.
  • A close below the $49 price range would cancel all bullish outlooks.

According to Coinmarketcap.com, Ethereum Classic is at the time of writing ranked at number 22. Its market cap currently stands at around $6.9 billion, with a 24-hour trade volume of $3.6 billion.

Ethereum Classic Price Analysis: General price overview

Ethereum Classic’s price has taken a dip for the fourth straight day as other crypto-assets register price recoveries. At the time of writing, Ethereum Classic has dropped to $59.94, which is about 72 percent below its year-to-date high. Despite this, the crypto asset has recorded a positive price movement during today’s early morning trading session.

A few weeks ago, ETC witnessed a massive price surge that saw it hit impressive price regions. This resulted from retail investors rushing to buy the coin when the leading Ethereum coin was rallying to its all-time high of about $4,000. The Ethereum coin is significant in the lifespan of the Ethereum Classic as it is regarded as a substitute for the relatively expensive token.

Despite this correlation, ETC’s price depreciation has been more noticeable than that of ETH. Ethereum Classic’s losses gained momentum overnight when market participants raised security and privacy concerns of virtual currencies. This was after the FBI managed to retrieve cryptos from the Colonial Pipeline scandal. ETC witnessed a 24 percent price dip between June 6 and June 9. Fortunately, the steady price decline did not manage to breach the 79 percent Fibo retracement level at around $49. The crypto coin registered a quick price reversal from the $49.5 swing low, pushing it upwards by 33 percent, to where it currently trades, $60.16.

Ethereum Classic price movement in the past 24 hours

Ethereum Classic Price Analysis: ETC approaching a turning point, needs support to turn 1
Source: TradingView

According to Ethereum Classic’s 24-hour chart, its price movement managed to breach the 50 percent Fibo retracement level at $61.7 before retracing to where it is currently trading. If the crypto coin succeeds in closing the day above the 12-hour candlestick, the ongoing price consolidation will fade to pave the way for a rally.

In such a case, traders should expect the Ethereum Classic bull run to breach the swing lows up to $72. In retrospect, this uptick will be a 15 percent surge from its current buying price. Since the uptrend is not limited, Ethereum Classic’s uptick might try and bypass its recent $79.12 swing high to settle around the $83 price range. This will be an extreme case of bullish movement.

Ethereum Classic 4-hour chart

Ethereum Classic Price Analysis: ETC approaching a turning point, needs support to turn 2
Source: TradingView

On the contrary, if ETC fails to stay afloat at the 50 percent Fibo retracement level at around $62, a bearish trend will surface. Such a move will indicate increased selling pressure or weak buying activity. If Ethereum Classic fails to settle above the 50 percent Fibo retracement level, investors should expect the ongoing consolidation between $61 to $53 to continue. If holders of the coin currently decide to sell, Ethereum Classic risks plunging towards the 79 percent Fibo retracement level at around $49.

Conclusion

In the event Ethereum Classic breaks down past the $49 price level, all gains risk going down the drain as a possible downturn will take over the scene. ETC might end up at $39.60.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.