Panic selling was observed all across the altcoin market after Bitcoin plummeted to $45,000. Ethereum Classic, which has actually enjoyed a bit of a bull run lately, has seen a 24% drop in the past number of hours. A crucial support zone was breached in the process as the price dropped towards its July-levels.
A few places have exceeded the 4 hour ETC time. These zones can stop further bleeding in the market.
Ethereum Classic 4-hour Chart
ETC’s losses were compounded not only by a market sell off, but also by a double lead developed to $ 77.5. This bearish pattern was confirmed when the price formed two identical peaks and a break below a critical support area – In this case $58.6.
At the time of composition, the cost had in fact shifted to its degrees at the very beginning of July. However, a single candlewick did drop as low as $48.2, marking a 1-month low for the digital asset. When it comes to ETC’s short-term trajectory, great emphasis would be placed on the $ 1 and $ 53 support locations. If buyers puncture through both these defenses, ETC could tumble all the way to its 20 July swing low of $37.86.
If there is a rebound, ETC would definitely need to close over $ 61.2 to attract even more buyers to the market.
Reasoning
The Awesome Oscillator fell sharply below the half-line and matched levels last seen in June when ETC dropped to a 2-month low of $32.3. Additionally, the ADX was well north of 46 and also recognized a strong bearish market pattern.
Even the Relative Strength Index was under immense pressure. The index witnessed almost a vertical drop into the oversold territory. It stopped working to trigger favorable action.
Conclusion
ETC seemed to be in lieu for an extended sell-off all the way towards $37.86 if buyers fail to counter selling pressure. Support slots at $ 53, $ 48, and $ 40 can lower the cost, but there are plenty of unpredictable things out there.
The RSI’s oversold nature had not led to a reversal at press time and this was concerning. A wider resurgence of the market could be the solution for the future of ETC.
