Ethereum Classic (ETC) has been decreasing since the beginning of May and has revisited the previous all-time high level.
ETC has broken out from a descending resistance line and is in the process of creating a higher low. However, the ongoing bounce does not resemble a bullish trend reversal.
Long-term ETC retest
ETC has been moving downwards since reaching an all-time high price of $176.7 on May 6. The decrease continued until a low of $32.3 was reached on June 22. The token has bounced and has been moving upwards since.
This is a re-test of the $44 horizontal area, which previously acted as the all-time high price on Jan. 2018.
Despite the bounce, technical indicators are bearish. The MACD & RSI are both decreasing, even if the latter is still above 50. The Stochastic oscillator has made a bearish cross.
The daily chart provides a slightly more bullish outlook.
After the June 22 bounce, ETC broke out from a descending resistance line. It managed to reach a high of $62.67 before dropping.
Technical indicators are showing some bullish signs, such as the bullish cross in the Stochastic oscillator and RSI movement above 50. However, the bullish reversal is not confirmed yet.
There is strong resistance at $82, a level which has previously acted as both support and resistance. Until the level is reclaimed, the trend cannot be considered bullish.
Cryptocurrency trader @Altstreetbet outlined an ETC chart, stating that it will be the first altcoin that he will buy after the ensuing dip.
However, the upward movement looks more like a three wave structure than it does a five wave one. ETC has been moving downwards since reaching a high of $62.67 on June 30.
There is strong support between $44-46. This is both a horizontal support level and the 0.618 Fib retracement level.
While ETC seems likely to bounce once it reaches it, the wave count does not indicate that this is a bullish reversal.
Therefore, while short/medium-term bounces could transpire, it seems likely that the trend is still bearish.