Ethereum Classic price has rolled over in the last two days, losing 8.5% despite broader market strength. Is ETC heading lower, or will it play catch up?
Ethereum Classic (ETC) is changing hands at $58.05, down $1.05 (-1.77%).
ETC has tracked the wider cryptocurrency market higher over the last three weeks, gaining more than 50% from the 20th of June’s $37.44 low. However, unlike many other assets, the Ethereum Classic price is yet to break out.
The last seven days has added more than 16% to ETC. As a result, the network’s market cap has increased to over $7.5 billion. This ranks Ethereum Classic as the 18th-largest cryptocurrency ahead of Polygon. However, due to 17th-ranked Internet Computers’ impressive 64% weekly gain, ETC is unlikely to improve its ranking soon.
Furthermore, the successful upgrade to the Ethereum network has seen the bigger project increase the recent outperformance of its smaller rival.
So how does this leave investors in ETC?
The daily chart paints a fairly positive picture.
During June’s weakness, the price held above the 200-day moving average at $38.87. Furthermore, the subsequent rally has lifted ETC above the 50 DMA at $48.40, and in the last three days, ETC has jostled with the 100-day at $61.26.
However, as yet, the Ethereum Classic price has failed to close above the 100 DMA. And because of this, trend line resistance has formed at $64.10.
Countering the resistance is a rising trend line from June’s low, at $51.40. This is the first level of support, followed by the 50 DMA. The outlook is moderately bullish as long as ETC remains above $48.80. Furthermore, a close above $64.10 reinforces the positive outlook and targets $85.00.
However, below $48.80, the bears may take control, and in this event, the 200 DMA at $38.87 is an achievable target.
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