Ethereum Classic (ETC) has suffered a 40% correction within the last 90 days. This price decrease happened due to intense selling pressure, with buyers failing to halt the downswing.
However, since the beginning of this week, ETC appears to have shown strength after bulls seem to have defended the $17 zone. Despite that, the path to erase this double-digit decline may be challenging.
With ETC failing to break above critical price zones, here is what could be next for the altcoin.
ETC Remains at Crossroads
According to the daily chart, ETC’s price reached a swing high of $38.38 on Dec. 6, 2024. Today, the altcoin’s value trades below $20.
The chart below shows that the decline from the peak to the current value formed a descending channel. Seven days ago, ETC hit a year-to-date (YTD) low of $15.95.
At that time, the cryptocurrency flashed readiness to trade lower. But that did not happen as ETC bounced off the low and hovered near $18.
While the price may have recovered, two key indicators reveal that a sustained upswing might be unlikely. First, the Relative Strength Index (RSI) remains below the 50.00 neutral line, indicating bearish momentum about the token.
If sustained, this suggests that ETC lacks strong bullish momentum for now. The MACD struggling to move above zero indicates weak buying pressure, and unless a clear breakout occurs, ETC’s price may continue ranging between $18 and $20.
The Awesome Oscillator (AO) position also seems to align with this bias. The AO measures momentum by comparing recent and historical price movements.
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When the AO is positive, momentum is bullish, while a negative rating indicates a bearish outlook. As of this writing, the AO has flashed green histogram bars with a negative reading.
This position indicates that the momentum around ETC is not largely bearish, but there is no bullish confirmation yet. Until momentum shifts in either direction, the price may continue consolidating.
ETC Price Action Stalls Below $20
Looking at the short-term price potential, the 4-hour ETC/USD chart shows that the red line of the Supetrend indicator is above the price.
The Supertrend shows whether the technical setup has flashed a buy or sell signal. When the green line appears, it is a buy signal, indicating that the price can jump.
For example, when the green line appeared, ETC’s price climbed from $24.80 to $29.25.
However, considering the current outlook, the altcoin might fail to retest the 0.236 Fibonacci level at $20.44.
In that instance, the token could decline to $15.90. On the other hand, if ETC breaches the $20.44 resistance, the cryptocurrency could climb to the 0.618 Fibonacci level near $27.78.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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