- ETC/USD explored lower levels towards $5.5 but managed to jumpstart a reversal.
- Ethereum Classic is staring into a reversal likely to see it refresh lows towards $5.5.
Ethereum Classic managed to avert a possible slump towards $5.5 support last week. Besides, the conditions across the market were a prime further breakdown. The breakdown below the 100 Simple Moving Average (SMA) 4-hour chart and the 200 SMA 4-hour fueled declines below the vulnerable $6.0 support. ETC/USD explored lower levels towards $5.5 but managed to jumpstart a reversal on hitting lows around $5.68.
ETC/USD 4-hour chart
The entire cryptocurrency market, mostly driven by Bitcoin made a staggering recovery earlier this week. The strengthening bullish grip saw Ethereum Classic triumphantly rise above the 200 SMA resistance at $6.1032 and the 100 SMA at $6.2969 respectively.
Additional support from the ascending trendline cemented the buyer’s position in the market. ETC curved a trajectory towards the next resistance target at $7.0. Unfortunately, the break above $7.0 failed to make headway resulting in an ongoing correction.
Rising Wedge Pattern
The same 4-hour timeframe shows the formation of a rising wedge pattern. The pattern is usually interpreted as a reversal technical indicator. Two trend lines are used to connect pivotal highs and pivotal lows. The apparent convergence heading to the upper right always hints a breakdown and the beginning of a reversal.
In this case, Ethereum Classic is staring into a reversal likely to see it refresh lows towards $5.5. However, the short-term picture is slightly positive with the Moving Average Convergence Divergence (MACD) at ease at +0.1167. Also, the existing divergence is likely to ensure that the buyers defend short-term support areas at $6.5 and $6.0 in that order.
Ethereum Classic Key Levels
Spot rate: $6.79
Relative change: -0.03818
Open: $6.8305
High: $6.8550
Low: $6.7411
Prevailing Trend: Strongly bearish
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
