- Ethereum Classic bulls held hostage under $11.00 and the critical double-top pattern.
- ETC/USD technical levels align for a tentative sideways trading trend in the short term.
Ethereum Classic happens to be struggling with increased selling activity after the surge on Monday ran into a wall at $11.00. Interestingly, it has managed to hold to 10% gains accrued in the last 24 hours. However, on a daily basis, it trading only 0.86% higher. The cryptocurrency live rates show the prevailing trend is bearish while the volatility is low.
The snag at $11.00 has formed a double-top pattern whose impact is resulting in the retracement witnessed on Tuesday. ETC/USD is doddering at $10.51 at the time of writing. If declines progress under $10,00, there is a chance that Ethereum Classic could dive to the first support provided by the 61.8% Fibo taken between the last swing high of $11.98 to a swing low of $4.29.
Also in line to offer support when the need comes is the 50 SMA on the 4-hour chart (marginally under $9.00). The confluence formed by the 100 SMA and the 50% Fibo at $8.00 remains intact as the key support.
From a technical perspective, Ethereum Classic is likely to continue to nurture a sideways trading trend in the near term. For instance, while the RSI hit the pause button at 84 it has managed to stay within the overbought. The sideways ranging cement the bulls’ presence in the market and the tendency of ETC to trade horizontally around $10. However, in order to ensure continued movement north, the bulls must rise above the impact of the double-top patterns and push ETC towards the resistance at $11.00.
ETC/USD 4-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
ETC/USD technical levels align for a tentative sideways trading trend in the short term.