fxstreet.com
- Ethereum Classic price has risen by 38% since the start of the year.
- ETC could retest the $16 zone resulting in a 20% downswing.
- A breach above $25 would invalidate the bearish thesis.
Ethereum Classic price has cultivated a new narrative as the bulls produced a massive 25% influx on January 4. The upswing was the largest daily gainer for ETC since July 16's 31% rise, bringing a feeling of bullish nostalgia back into the market sentiment.
Ethereum Classic price takes the market by surprise
Ethereum Classic price currently auctions at $20.16. The recent surge has halted just beneath October's broken support zone, which aided a 20% rally between October 21 and November 6. From a classical technical analysis perspective, the recent uptrend hike looks like a retest into previous support. The imagery is commonly displayed before sharp sell-offs occur.
Still, calling for a bearish reversal at the top of a newly established counter trend would be ill-advised. Time is required to determine whether the ETC price is the start of a much larger move or not. If the price can remain above the 8-day exponential moving average at $19, the next bullish trade will likely retest liquidity above the current pivot level near $22. ETC will rally by 10% if the bullish scenario occurs.
ETC/USDT 1-Day Chart
On the contrary, If the bears fail to hold support from the 8-day exponential moving average at $19, a cascade of selling could ultimately be triggered. The bears would likely challenge the $16 liquidity zone. The aforementioned price level is a vital area of liquidity that has remained untested since the initial stages of the recent 38% rally.
Invalidation of the downtrend thesis would be a breach above the $25 candlestick that tore October’s support zone. The Ethereum Classic price would increase by 20% if the bulls were successful.