- Ethereum classic price continued to move down against Bitcoin, and my view of not investing in ETC proved correct.
- There is a new bearish trend line formed on the 30-min chart of ETC/BTC (data feed via Simplefx), which is acting as a resistance for an upside move.
- A break below the recent low of 0.0033BTC may call for more losses in the near term.
Ethereum classic price declined and closed below 0.0040BTC. It looks like there are chances of more losses moving ahead in ETC/BTC.
Ethereum Classic Price Decline
Ethereum classic price ETC in a no surprise move traded lower against Bitcoin recently. A new weekly low was formed below 0.0040BTC, as the price traded as low as 0.0033BTC. The price attempted twice to break the stated level, but failed and later started to move higher.
However, the upside may be limited as there is a new bearish trend line formed on the 30-min chart of ETC/BTC (data feed via Simplefx). The highlighted trend line and resistance area is currently acting as a resistance and preventing the upside move. Moreover, the 23.6% Fib retracement level of the last drop from the 0.0046BTC high to 0.0033BTC low is also acting as a hurdle for the ETC bulls and stalling the upside move. As long as the price is below the trend line resistance, there lies a risk of further declines in the near term.
Only a break above the trend line could negate the short-term view, and may call of a recovery in ETC. In that situation, the price may trade towards the 50% Fib retracement level of the last drop from the 0.0046BTC high to 0.0033BTC low.
30-min MACD – The MACD is in the bearish zone, which is a negative sign for the bulls.
30-min RSI – The RSI is also below the 50 level, which is a bearish sign.
Major Support Level – 0.0033BTC
Major Resistance Level – 0.0038BTC
Charts courtesy – SimpleFX
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