Ethereum Classic (ETC) – Ready for its next bearish wave

Ethereum Classic (ETC) – Ready for its next bearish wave

Posted on Tuesday, September 20 2022 at 8:31 pm GMT+0000

Ethereum Classic (ETC) is currently confronting the lower surface of the Ichimoku cloud, having reacted on Monday to the tough support zone of 24.58, linking the July 23rd peak and the return line of the descending channel stretched from the August 13th high.

The mid-June to mid-August positive impetus, which has overshot the price by more than 260%, has vanished, as reflected by the oscillators which are now sending clear discouraging signals. The MACD is falling far below its trigger line in the negative region while the RSI remains weak within the bearish territory. Furthermore, the bearishly charged Ichimoku lines are indicating that the negative pressures are now the frontrunner.

Thus, if selling powers amplify further, clearing the Ichimoku cloud and more importantly the important support foundation of 24.58, the focus will immediately turn to the May 16th peak of 22.83. From here, a deeper decline could hit the June 26th inside swing high of 17.97.

On the flip side, if the price sets a strong foothold around the lower surface of the Ichimoku cloud, the Ichimoku lines at 34.00 35.00 may block the way higher towards the upper bar of the channel.  A sustainable move above the latter will test the most recent peak of 42.33, achieved on September 6th. Should the positive momentum remain dominant, the next milestone on the road will be the August 13th high of 45.75.

All in all, Ethereum Classic seems to be standing on moving sand and a dip below 24.58 will confirm additional bearish developments. Only a move above the channel will inject some optimism back into the coin.