Not yet being able to deflect the selling pressure, Ethereum Classic (ETC), at press time, was stumbling near its down-channel (yellow). With the latest bearish pull, ETC shifted the purview of its long and short-term trend into the hands of sellers.
Now that the alt lost its long-term trendline support, the slackening phase could see an extension in the coming times. At press time, ETC was trading at $27.46, up by 2.4% in the last 24 hours.
ETC 4-hour Chart
The recent down-channel (yellow) retracement saw a nearly 53.64% fall while the selling spree halted at the $26-base. Before this reversal, ETC saw a lift-off from its 14-month trendline support (now resistance) (white, dashed) that fetched an over 110% ROI.
As the year-long trendline resistance (white) stood sturdy, it laid the foundation for the latest bear run. Unfortunately, this drop snapped the 14-month baseline and flipped it to immediate resistance. For the last 11 days, the basis line (green) of the Bollinger Bands (BB) has curbed all the bull recovery attempts.
With sellers having a definite edge in the current structure, ETC could further slack toward the lower band of the BB. After a likely revival from the lower band, the alt could enter into a stagnant phase in the $26-$28 range. An inability to reclaim a spot above the immediate trendline resistance could hamper all immediate recovery prospects.
The RSI’s recovery from the oversold mark bashed into a ceiling at the 40-level. The bulls still needed to up their game in regards to the trading volumes to sustain a trend-altering rally on the chart.
Furthermore, the CMF raised slight concerns after marking a bearish divergence with price over the last day. Its immediate resistance would cause a delayed recovery for ETC.
The current market dynamics unequivocally blended well with the bearish narrative. So a likely devaluation towards the lower band of the BB could ignite a short-term recovery. A close above the $28-mark would be critical in determining a realistic trend-altering bull rally in the coming days.
At last, the broader market sentiment and the on-chain developments would play a vital role in influencing future movements.