On Wednesday, Ethereum Classic climbed to $62.67 before beginning to fall.
Profit-taking is also visible in all major cryptocurrencies.
On the downside, there are a couple of supports that will hold ETC around $46.50.
The price of Ethereum Classic has dropped today, and the upswing that lasted five days and reached a high of $62.67 on Wednesday appears to be fading.
After numerous signs pointed to an overbought state, Ethereum Classic’s fast gain in May was perhaps a little too dramatic and deserved a pullback. The decline that ETC experienced in May and June caused it to test twice the support level at $32.90.
With a breach to the upside of the falling trendline on June 29, ETC recovered and was able to break out of a bearish pattern.
The Ethereum Classic price has shown that it still has room to rise. However, it just rejected the $62 level, indicating that additional higher is unlikely. A target of $68 would be fantastic, but all major cryptocurrencies are currently experiencing profit-taking. As a result, the upward potential for the rest of the week appears to be restricted.
Nonetheless, the prevailing sentiment should be beneficial. We don’t see this translating to ETC grabbing a bid and aiming for the $68 price objective, which is a bit counterintuitive. This appears to be a good resistance level, with the 55-day Simple Moving Average (SMA) and a close 23.8 percent Fibonacci level. Buyers should be tempted to drive the price up to that level.
On the downside, the declining trend line was broken, revealing a short-term floor around $46. The price of Ethereum Classic broke over this resistance and has not returned since. Sellers will seek to take profits on their shorts at this level.
Daily chart of ETC/USD
To summarize, we observe both buyers and sellers in ETC waiting for a break, in order to take advantage of the opportunity. This will keep the price of Ethereum Classic within the range of $62 to the upside and $46 to the fall. If either boundary is broken, look for $68 as resistance, with the Fibonacci level and the 55-day SMA acting as guardians.
If the $62 level is broken, we can expect a retest of the $32.90 level, which is supported by the 200-day SMA and the double bottom./n
