- The price of Ethereum Classic triggered the bullish hammer candlestick pattern created on June 8, but the pursuit has been hesitant.
- ETC broke through the upper limit of a narrow descending channel that began on May 25.
- Social media volume has stagnated during the recent drop, suggesting excessive sentiment has been vented.
The Ethereum Classic price continues its corrective decline, looking for a catalyst to get it out of the doldrums. The penetration of the upper limit of the channel on June 9 is a good start, but the lack of continuity has discouraged ETC’s bullish investors. A change in the environment of the cryptocurrency complex may be required to revive the stalled opportunity.
Ethereum Classic price is at the crossroads of indecision
On a review, the Ethereum Classic price fell 75% from the May 6 high at $ 158.76 to the May 19 low at $ 40.00, including a one-day dip of 55% on the May 19. The expansive downside volatility was a significant break from the previous six weeks. , where ETC soared 1,200% frantically after breaking free from a symmetrical triangle. Nonetheless, the Ethereum Classic price still closed with a 90% gain in May.
A big benefit of the historical correction and the decline since May 25 has been the elimination of the extreme overbought readings on the daily and weekly Relative Strength Index (RSI). This is important because it positions the Ethereum Classic price to have the clue to extend the momentum of a rally, thus providing better returns for patient investors.
The recent Ethereum Classic price drop stabilized on June 8 with a bullish hammer candlestick pattern successfully triggering the next day with a close above the hammer high of $ 59.55 . This is a remarkable technical development that has encouraged investors to prepare for further gains, but yesterday’s unfavorable price action limited the emerging opportunity. Nonetheless, ETC remains above the upper limit of the channel, suggesting a low level of relative strength.
Unless the price of Ethereum Classic falls below the June 9 low of $ 53.03, the short-term bias is tilted up. The first resistance appears at the 50-day Simple Moving Average (SMA) at $ 69.09, rewarding investors with a 20% gain from the current price.
The next tactically important resistance is the 38.2% Fibonacci retracement at $ 85.36. The level is critical because it corresponds to an area of price congestion accumulated during the period from May 12 to 18. The volume will need to improve considerably for the ETC to master the resistance. Even if unsuccessful, the Ethereum Classic price will have achieved a gain of 50% from the current price.
It’s easy to be drawn to big gains like 50%, but in today’s environment, a 20% rally to the 50-day SMA would be a big boost for any portfolio.
ETC / USD daily chart
A drop below the June 9 low of $ 53.03 restores a neutral bias and exposes the Ethereum Classic price to a test of the ubiquitous 2018 high of $ 46.98, resulting in a 20% loss from the price current. If the ETC breaks below this price point, it will find some support at the 78.6% retracement level at $ 43.03.
The May 19 and 23 lows are expected to cap losses, or the Ethereum Classic price could drop all the way to the 200-day SMA at $ 25.96.
During the parabolic move in early May, the volume of social media naturally exploded, mirroring the manic speculation that gripped ETC. Social media volume collapsed along with the price, but since June 6 the metric has stabilized and sits slightly above the levels that preceded the massive April-May advance. The metric indicates that the Ethereum price has finally liquidated excess social media intensity.
ETC Volume Social – Santiment
Ethereum Classic has been labeled as cheap Ethereum, and the historic rally has resulted as market operators leveraged Ethereum’s strength. However, it is essential to consider that for the most part ETC is not involved in the exciting developments of DeFi and NFT like ETH. Therefore, it does not have a firm and compelling fundamental story.
Piggyback on Ethereum has been brief but very profitable, so market speculators need to keep a clear view on ETH to measure the sustainability of any Ethereum Classic price movement.