Ethereum Classic (ETC) Retraces After 165% Increase in Two Weeks

Ethereum Classic (ETC) likely initiated a bullish trend reversal on June 18. However, it has been falling since July 29, potentially retracing in response to the entire preceding upward movement.

ETC has been falling since reaching an all-time high price of $179.83 in May 2021. The downward movement has so far led to a low of $12.47 in June. 

The downward movement seemed to cause a breakdown from the $17 horizontal area. This is a crucial area since it had acted as resistance throughout 2018-2021. However, ETC bounced shortly afterwards and reclaimed the area, rendering the previous breakdown as only a deviation (red circle). 

The upward movement took the price to a descending resistance line that has been in place since Aug. There, it made its fifth breakout attempt (red icons). Since lines get weaker each time they are touched, an eventual breakout from this line is likely. 

Furthermore, the weekly RSI has moved above 50 (green icon). It remains to be seen if the indicator manages to hold on above this line or falls below it, similar to what occurred in April. If it manages to hold on above 50 and the price breaks out from the resistance line, it would confirm that a long-term bullish reversal is in place.

Ongoing upward movement

The daily chart shows that ETC broke out from a shorter-term descending resistance line on July 15. Afterward, it proceeded to increase by 165% in a period of 14 days. This led to a high of $45.36 on July 29. 

However, the price has been decreasing since. It is currently approaching the 0.5-0.618 Fib retracement support area between $25 and $29. This also coincides with a horizontal area that previously acted as support. So, it is likely that the price bounces once it gets there. 

Furthermore, the daily RSI has moved above 50, a sign that is associated with bullish trends.

ETC wave count analysis

Cryptocurrency trader @Altstreetbet tweeted a chart of ETC, stating that it is the first large cap altcoin to begin a bullish count.

The most likely wave count suggests that since the June 18 low, ETC has completed a five-wave upward movement (white). Therefore, it has begun a new bullish trend. 

The ongoing decrease is likely part of an A-B-C corrective structure (black). The most likely area for the correction to end would be between the 0.5-0.618 Fib retracement support levels at $25-$29. 

For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here

The post Ethereum Classic (ETC) Retraces After 165% Increase in Two Weeks appeared first on BeInCrypto.

Earning Passive Income With Crypto

Related Posts

Has the U.S. Dollar Index (DXY) Completed Its Uptrend?

After months of upward movement, the U.S. dollar index (DXY) may have peaked and initiated a downtrend. In early August, the DXY broke down from its long-term,…

20000% in One Minute on Play to Earn Game Tothesmart

PRESS RELEASE. The crypto enthusiast has got 10,032 BUSD into their wallet by buying virtual miners in the Play To Earn game Tothesmart for only 50 BUSD….

Ethereum’s Goerli Testnet Implements The Merge, ETH Price Jumps 74% Higher During the Past 30 Days

The Merge has successfully been implemented into Ethereum’s third and final testnet, Goerli, after previously adding Merge support to the testnets Sepolia and Ropsten. The Merge was…

Arsenal Loses Appeal Over Misleading Crypto Advertising

Premier League giants Arsenal F.C. have lost an appeal and been given a second warning by the U.K.’s Advertising Standards Authority (ASA) over the “misleading” marketing of…

Medieval Empires: Ertugrul To Ease Entry Into Web3 Gaming

In light of blockchain gaming’s advancement into the mainstream gaming industry, Medieval Empires: Ertugrul’s founding team attended the Blockchain Economy Istanbul Summit, the biggest blockchain event in…

Biggest Movers: ATOM Climbs to Highest Point Since May, While SOL Rises by Over 10%

Cosmos rose to its highest point since May earlier in today’s session, as crypto markets surged on Thursday. The global market cap is trading over 6.27% higher…