Ethereum Classic could fall after the rise!

Avatar Robert Mayne 2 years ago

Ethereum Classic could fall during the following days, since this strong rise needs a correction, and the bears will take advantage of it very well. Certainly, the purchases have been boosted by Bitcoin, which records gains and leads the market, but also, Ethereum has been on the rise, even reaching a level not seen since the beginning of June.

It should be noted that at the time of making this technical report, the price of Ethereum Classic (ETC) is exactly US $ 22.36 and registers a gain of 13.39% in the last 24 hours. In addition, in the last 7 days it has risen by 55.01% according to data from CoinMarketCap.

What could have boosted prices?

Since the beginning of the European session, cryptocurrency purchases were boosted, and a large majority began to gain ground against the dollar. But this, we also appreciate in the stock market and commodities, as exposed by our Telegram channel, KEY ALERTS.

Undoubtedly, the generalized rise must be taken into account when evaluating the trend of ETC. Since, it is not only Bitcoin, Ethereum has also been a participant in this rise, as it reached a level not seen in more than 1 month. Therefore, the Ethereum Classic bulls may have visualized this as a signal to get on the bullish wave.

Also, let’s remember that a Fed meeting is coming soon… There were rumors, that the next rate hike would be 100 points. However, various politicians have refused to tolerate such a rise, so it is estimated that this July the rise will be 75 basis points. This, certainly, turned out to be positive for the market in general, cryptocurrencies, and clearly, ETC.

Although it is still worth being attentive, since at the FED meeting that will take place on July 27, everything will be defined.

Another fact to consider is that during the previous week, the DXY index closed negative, which was very positive for ETC and cryptos in general. However, at this time we should take our profits, because a big correction is coming…

Technical analysis: Ethereum Classic could fall!

At the time of analyzing the technical panorama of Ethereum Classic, we noticed that there may be a reversal in the trend. Which, obviously, would leave ETC at lower levels than current.

Now, we can see that the Japanese candles have touched a fairly important resistance zone; located at US $ 23.60. And in the MACD, we confirm that there is exhaustion on the part of the bulls. Therefore, it is quite likely to see Ethereum Classic fall.

Ethereum Classic could fall by more than 10% in the next few hours
Ethereum Classic could fall in the next few hours. Source: TradingView.

The ETC support zones to be monitored are:

The fall will return us first to level A, but then we estimate that there will be a rebound up to level B, which will act as a psychological resistance. Likewise, we must be vigilant, since if we see rejection signals in support A and level B, we could fall to zone C, and there, the bulls are expected to take control again.

Additionally, we see that the RSI gives us overbought readings; it stands at 74 points. In addition, it has already crossed downwards with its EMA. Therefore, it remains only to appreciate the fall…

To close, let’s consider that the candles are located outside the upper margins of the ENV, being another fact that confirms the fall of ETC; at least, up to the central levels, which are located near the support zone C.

The information in this content should be taken for informational purposes only, not intending under any point of view to urge the purchase / sale of financial assets.

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