Ethereum Classic formed higher highs and higher lows to create an ascending channel on its 1-hour time frame. Price made a sharp climb to the top on the Coinbase and Robinhood listing but has since bounced off.
Applying the Fibonacci retracement tool on the latest swing high and low shows that Ethereum Classic is still within correction territory, so there’s a good chance bulls might still return. Price is testing the 61.8% Fib, which is just above the channel bottom around $34 and is close to the moving averages’ dynamic inflection points.
If these levels hold as support, price could make its way back up to the channel top around $21, which is also the swing high. The 100 SMA is above the longer-term 200 SMA after all, so the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse.
RSI is on the way down but looks ready to move back up again as it approaches oversold levels. Stochastic is already indicating oversold conditions and turning higher could bring buyers back in. A break below the channel support, however, could expose Ethereum Classic to further losses.
Cryptocurrencies have had a rough ride in general this week, and it didn’t help that the SEC released a notice on its decision to delay the ruling on a bitcoin ETF application. This cast more doubts for the industry, which appears to be moving to the tune of FUD (Fear, Uncertainty, Doubt) these days.
Ethereum Classic and its peers could use another set of positive updates to resume their gains, although ETC is currently being supported by expectations of higher volume and increased activity from the Coinbase and Robinhood listings.
Still, ETC has surpassed a handful of altcoins to land in 11th place on cryptocurrency rankings after previously hovering around 16th place.