Ethereum Classic Finds Support at 200-Day MA Amidst Sharp Fall
Ethereum Classic has so far failed to trade above the strong resistance level it created in June 2021, even after four months. The level of $75 felt approachable during the second half of August 2021, but somehow the buying sentiment melted away. After getting two multiple rejections from $75 levels, ETC buyers seem to have finally accepted the resistance level for now.
The ensuing profit booking since September 06, followed by a substantial double-digit profit booking on September 07, has completely washed off any hope of expectation for the positive sentiment to continue. While ETH marked close to a fresh all-time high, ETC failed to reach even the halfway mark of its all-time high in 2021, which came at $179.
Ethereum Classic carries the original DNA of algorithms and protocols but has failed to scale to even 10% to what ETH has risen so far. At present, Ethereum Classic ranks at 26th position with a total market capitalization of $6.7 billion with a circulating supply of close to 62%.
Ethereum Classic Price Analysis
Even on extended durations, it is visible that ETC has been stuck in a range with an upper limit of $75 and a lower limit of $32. Current trends and movement indicate a possibility of marking a fresh all-time low.
Ethereum Classic has seen a single day of spiral down that caused a fall of more than 35% within a few hours. Even with retracement, ETC could never gather the buying strength to initiate a fresh round of rally. While major cryptos consolidated positively, ETC has again fallen back to its essential support level of 200 days, which comes close to $49.
Breaching this level indicates a lack in buying sentiment even at the lower value of $50, which is 40% below its recent high of $77. Moreover, a negative outcome was pictured even before the price action of September 20 by its flat bottom pattern with a declining trend line. On technical indicators, RSI has clearly shown the dip in volumes and sentiment, which is also approved by the MACD indicator that has taken a plunge into the negative axis.
Despite marking a huge dip from $179 to $32, RSI on ETC never dipped towards level 20, an oversold zone. Not only does this indicate that ETC is being sold more than it is bought, but this price action is happening close to the most extensive support ETC has right now.
While the price action shows the creation of fresh lows with every dip, the price of Ethereum Classic was still trading within the range of $50. The breach of the $50 level in the last hour of Sunday created a negative trend that might take longer to overcome. This story is not unique, but falling so consistently concerning support levels that lead to a breach of $50 levels followed by breaching the 200 DMA levels indicates a negative outlook on ETC.
Based on our Ethereum Classic forecast, one must wait for an uptrend to begin before buying more of ETC. RSI has tanked into the oversold zone with a very high trading volume.