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The ETC Technical Analysis shows a declining trend approaching the crucial support zone at $26, threatening a downtrend continuation.
The ETC price action shows a bearish reversal from the $40 resistance level, with a double top pattern accounting for a drop of 28%. The downtrend currently approaches the crucial support zone between $23 to $26 after crashing below the crucial daily EMAs. So will the downtrend continuation drop below the crucial support zone leading to a death cross?
The Ethereum Classic prices show a high momentum downtrend.The increased selling pressure endangers the buyers at the $25 mark.The intraday trading volume in Ethereum Classic is $1.30 billion.
Source – TradingView
ETC Technical Analysis
The ETC price action shows a bullish reversal from the 200-day EMA with a double bottom pattern reaching $40. However, the increasing pressure resulted in a higher price rejection and a double top pattern with the neckline at $33.5.
The increased selling pressure on 15 September led to a downward trend resulting in a bearish breakout of $33.5. Accounting for a drop of 30%, the free fall continues after breaking the 200-day EMA and the $30 mark.
The spike in the intraday trading volume currently supports the falling prices reflecting an increase in the underlying bearishness. Therefore short-term traders can expect a short-term selling opportunity to ride the downtrend. However, traders hoping for a breakout of the support zone must wait for the prices to close below the level.
If the selling pressure persists, the falling ETC prices will continue to break the $20 psychological mark and reach the $18 horizontal level. However, if the buyers are successful in asserting dominance over the support zone, a bullish reversal might retest the $30 mark.
The daily RSI slope crosses below the halfway line and approaches the oversold boundary reflecting an increase in the underlying bearishness. Moreover, the MACD and signal lines maintain a declining trend with a constant increase in the bearish cap.
Therefore, the technical indicators show the possibility of a downtrend continuation in ETC prices.
Resistance Levels – $30 and $33
Support Levels – $26-$23 and $18