Ethereum Classic price declines by 14% to test the 15-month downtrend

  • Ethereum Classic price fell to trade at $21.2 following November 9’s market-wide crash.
  • ETC lost its uptrend, but a downtrend is not yet set in stone as the altcoin faces critical support and the possibility of a bounce.
  • Ethereum Classic’s movement does not warrant a sell-off, as broader market cues are expected to turn bullish over the next few days.

Ethereum Classic price, following the broader market cues, posted a red candle on November 8 and 9, bringing the price down to a four-month low. This impacted the gradual recovery in the on-chain activity that monitors investor engagement as ETC holders pull up to the curb for a while.

Ethereum Classic price next target

Ethereum Classic price has fallen by 14.2% over the last 24 hours to bring the altcoin to trade at $21.2. It is now testing the top of a downtrend line that ETC successfully flipped into support back in July 2022. This 15-month-old line looks like it will be tested once again as the candlestick hovers right above it.

Considering the state of the broader market, recovery could take a little while longer since the bearish cues are only now beginning to recede. 

If ETC manages to sustain its price above the downtrend line, the coin could soon rise and be on its way to retesting the critical resistance of $25.8. Ethereum Classic failed to flip this level into support last month after it fell through it in October. A close above it would push ETC back to the same price levels it was at a month ago.

ETCUSD 1-day chart

ETCUSD 1-day chart

However, ETC could continue treading close to the downtrend line if a recovery is not initiated. Despite the dotted line of the Parabolic SAR – an indicator used to highlight the expected direction of an asset’s price – sitting above price and therefore signaling a bearish bias, a downtrend is not active. It appears the trend is not strong enough yet to reflect the Parabolic SAR’s signal. 

If the Average Directional Index (ADX) crosses above the 25.0 threshold, it will be a sign the downtrend carries more weight. Yet even then ETC bears will have critical support at $18.17 to overcome – there may be a bounce.

Thus, it would be wise for investors and traders to keep their ETC in their wallets until a downtrend is confirmed, which at the moment, is not the case.

Source link