The cryptocurrency market is experiencing a downturn, with major cryptocurrencies experiencing significant price drops. Among the losers is Ethereum Classic (ETC), which has lost over 10% of its value in the past 24 hours.
ETC Price Analysis
ETC’s price has been trading within a tight range between $16.63 and $17.71 for the past week. A breakout above this range was followed by a sharp rally, but the price was rejected at $18.94. After a period of sideways trading, the bulls regained control and pushed the price up by 15%.
However, the momentum was short-lived, and the price faced rejection at $21.62. Since then, the price has been making lower highs, indicating a bearish trend. The price is currently trading within a descending channel pattern.
Descending Channel Pattern
A descending channel pattern is a technical analysis tool that indicates a downtrend. The pattern is formed by two parallel lines, with the upper line representing resistance and the lower line representing support. The price tends to move between these lines, making lower highs and lower lows.
Technical Analysis
The Moving Average Convergence Divergence (MACD) indicator shows a rising red histogram, indicating increasing selling pressure in the market. The averages on the MACD chart are also falling, suggesting that the price is likely to continue falling in the near term.
Support and Resistance Levels
If the bulls can hold the price above the support level of $20, the price may regain momentum and challenge the resistance level at $21. If the bulls succeed in breaking through this level, the next target will be the resistance level at $22.50.
On the downside, if the bears gain control, the price could fall to the support level at $18.94. A break below this level would open the door to a further decline to the support level at $17.71.
Conclusion
The Ethereum Classic price is currently in a downtrend. The bulls are attempting to regain control, but the bears are still in charge. The price is likely to remain volatile in the near term, with a potential upside target of $22.50 and a downside target of $17.71.
FAQ (Frequently Asked Questions)
What is Ethereum Classic (ETC)?
Ethereum Classic is a cryptocurrency that was created after a hard fork of the Ethereum blockchain in 2016. ETC is similar to Ethereum, but it has a different set of rules and policies.
What is a Hard Fork?
A hard fork is a major change to the blockchain that is not backwards compatible. This means that once a hard fork occurs, the old and new versions of the blockchain are no longer compatible. Nodes that do not upgrade to the new version of the blockchain will be unable to participate in the network.
Disclaimer: The information provided in this article is for educational purposes only and should not be taken as investment advice. Cryptocurrency investments are highly volatile and carry a high degree of risk. Always do your own research and consult a qualified financial advisor before making any investment decisions.
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