Ethereum Classic was in recovery mode after bouncing back from its 200-SMA. Nevertheless, momentum remained weak and a descending triangle setup was nonetheless intact on its chart. A breakdown from this bearish pattern could lead to some sharp losses and buyers would need to work hard to overturn this thesis. On the time of writing, ETC traded at $63.2, up by 2.2% over the past 24 hours.
Ethereum Classic 4-hour chart
ETC’s lower highs and steady lows around $60-62 were used to plot a descending triangle pattern. The setup, which often sees a break to the draw back, had the potential to set off an 11% retracement in the direction of $54. To avoid a drop to monthly lows, ETC would first need to form a high above its previous swing high of $66.2.
From that time, a decisive shut above $67.4 would put bulls again within the hunt for larger worth ranges. A safety net can also be provided by the 200-SMA. A breakdown on 26 August did see ETC transfer beneath its decrease trendline however costs have been properly supported by the long run transferring common line.
Reasoning
The RSI has managed to stay afloat above 40 due to presence of some buying pressure in the market. Nevertheless, conserving the RSI restricted to simply 50 might work higher for sellers within the longer run. This is because a downtrend was currently active.
Some indecision was famous throughout the Superior Oscillator and MACD as each indicators traded shut their equilibrium ranges. Likewise, these indicators could spill quickly if selling pressure is not relieved. A fall beneath every of their respective half-lines would invite short-sellers into the image.
Conclusion
ETC was taking shape in a descending triangle formation and another retracement was on the cards. To invalidate this setup, patrons would want to first goal a excessive above $66.2. Failing to do so would put a lot of pressure on the 200-SMA, from where sellers would have the upper hand.
