Ethereum Classic Bulls Require Institutional Support – What May Happen Next?

Ethereum Classic Bulls Require Institutional Support – What May Happen Next?

 Published: July 15th, 2021

In 2016, almost $60 million worth of Ethereum was stolen by hackers that pushed to change the Ethereum networks code to alter and return funds to investors. However, some Ethereum nodes runners objected to this fork with codes led by ETH founder Vitalik Buterin. Later on, these nodes running the pre-fork blockchain were named Ethereum Classic.

Ethereum Classic has become a reliable investment opportunity as it follows the same concept of Ether. Recently, the Grayscale fund decided to invest almost $50 million in the Ethereum Classic by buying shares in a trust that holds ETC. As a result, it will create opportunities to buy more Ethereum Classic tokens. Ethereum Classic has a market capitalization of $5.29 billion, which is 1% of the overall cryptocurrency market. In this condition, any sign of involvement of other institutions in Ethereum Classic may create buying pressure in the ETC.

Let’s see the upcoming price direction from the Ethereum Classic technical analysis:

Ethereum Classic Daily Chart

Ethereum Classic Daily Technical Analysis 15 July 2021

Ethereum Classic has shown an impressive movement in 2021 by moving to the new all-time at the $175.00 level. However, the momentum did not sustain, and the price moved down following the broader crypto market crash. Currently, the price is above the 40.00 support level, which is the last hope for buyers.

In the above image, we can see that the Ethereum Classic is trading within the 50 EMA and 200 SMA, indicating that the price is still on a bullish trend. Moreover, the bullish daily candle of 29 June was impressive for bulls as the buying pressure was strong above the 50.00 psychological level. However, later on, the price started a correction, indicating that buyers are still active. In this price context, another bullish daily close above the 50 EMA may initiate an intense buying pressure in the price with the target of 90.00 level.

Besides, MACD Histogram is still bearish, where a positive Histogram with a price above 50 SMA is the primary requirement to keep faith in upcoming bullish pressure. Conversely, a strong bearish daily close below the 40.00 support level may take the price lower towards the 23.94 area in the coming days.

Ethereum Classic H4 Chart

Ethereum Classic H4 Technical Analysis 15 July 2021

Based on the Ichimoku Kinko Hyo on the H4 chart, Ethereum Classic moves down with strong bearish pressure. Although the price moved up before June 2021, it failed to hold the bullish momentum. As a result, the price moved down below the Cloud support with a corrective speed. Currently, the price is getting resistant from the dynamic Kijun Sen, and as long as the price is trading below the dynamic Kijun sen, the price may move lower.

In the above image, we can see that the price rejected the Dynamic Tenkan Sen and Kijun Sen and moved lower where the RSI is pointing downward below 40 level.

Any correction and rejection from dynamic Kijun Sen may take the price lower in the coming sessions in this price context. However, a strong bullish H4 close above the Kumo Resistance may alter the current market structure and take the price higher towards the 60.00 area.

Ethereum Classic H1 Chart

Ethereum Classic H1 Technical Analysis 15 July 2021

In the intraday chart, ETC is trading below the high volume level at 45.11. Moreover, multiple price rejections above the intraday high volume level indicate that the bulls became weaker in the price.

In the H1 timeframe, we can see that the current price is below the dynamic 20 EMA and vwap with a strong bear’s H1 close. Moreover, in the indicator window, MACD is bearish where Histograms are making new lows. The upcoming price may move lower towards the 40.00 level in the coming session in this price context. However, a stable bullish H1 close above the 48.00 level may alter the current market structure.

Should You Try Buying Ethereum Classic?

As per the current observation, Ethereum Classic buy has a higher possibility to continue if the price moved above the 50.00 psychological level with a bullish daily close. However, in the H4 chart, the price is still below the Kumo Support. Therefore, the bears have a higher possibility of taking the price lower towards the 23.94 support level as long as it is trading below the 50.00 Cloud support.

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