ETC/USD is Under Heavy Selling Pressure

ETC/USD is Under Heavy Selling Pressure

Published: February 28th, 2020

On February 6, ETC/USD (ETC/USDT) has tested a $13.22, which was a 17-month high. This was quite an achievement for ETC as it managed to gain nearly 300% since December 18, 2019. Most likely those who bought Ethereum Classic at the bottom have started fixing profits, which already resulted in a 45% price drop, in the past 20 days. Looks like the downtrend is ongoing and price can decrease even more.

4-Hour chart

ETC/USD 4-Hour Technical Analysis 28 Feb 2020

On the 4H chart, ETC/USD broke below the ascending channel and continued to move down, hitting $7.27 low on February 26. At this point, it has corrected up to $8 area, but there are no indications that the downtrend is stopping, to the contrary, current corrective move up can be yet another selling point.

Fibonacci, applied to the corrective wave up after the channel breakout shows that the nearest resistance is at $8.14. Yet the price hasn’t reached that level. If ETC will close above it, then this could end the decline, but it seems only for a short period of time. At this point, selling remains the priority and according to Fibonacci, the next support is located at 261.% retracement level. This is $7 strong psychological support, not to mention that it is a 76.4% Fibonacci retracement level of the last strong wave up.

1-Hour chart

ETC/USD 1-Hour Technical Analysis 28 Feb 2020

On the 1H chart, there is an extended descending channel, where we can see that price has reached the middle trendline. It has been rejected cleanly, which is yet another point to consider when thinking about buying ETC. In regards to the downside target, another extended channel is used. The lower trendline of which corresponds to the $7 key support area.

15-Minute chart

ETC/USD 15-Minute Technical Analysis 28 Feb 2020

And now the 15m chart, where we applied Fibonacci to the downtrend trendline breaking point. 50% has been placed to the point of the break, and it is clear that the price rejected the upside target at 0% Fibonacci, which is $8.07. It could be that ETC/USD is about going move lower after such a clean bounce of the upside target.

Summary

The Ethereum Classic is obviously trending down, providing good selling opportunities in the short term. As long as daily close remains below $8 psychological resistance and $8.14 Fibonacci resistance, price should be expected to go down.

Downside targets

Extremely strong support is seen at $7, which is confirmed by two Fibonacci retracement levels as well as a lower trendline of the extended descending channel. It should be a key level to watch because the rejection or a break below will give more clues about the longer-term price direction.

Probability of an uptrend

Currently, the probability of a trend reversal remains extremely low, although a break above $8.14 can change this. If that occurs, it can trigger a trend reversal, and eventually a long term uptrend continuation. Interesting times ahead and it would be worth watching other altcoins when/if ETC/USD will reach $7.

Support: $7.60, $7.00

Resistance: $8.00, $8.14

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