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Ethereum Classic (ETC) Retraces After 165% Increase in Two Weeks

2 mins
Updated by Geraint Price
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In Brief

  • ETC is following a long-term descending resistance line.
  • It has reclaimed the $17 horizontal support area.
  • There is support between $25 and $29.
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Ethereum Classic (ETC) likely initiated a bullish trend reversal on June 18. However, it has been falling since July 29, potentially retracing in response to the entire preceding upward movement.

ETC has been falling since reaching an all-time high price of $179.83 in May 2021. The downward movement has so far led to a low of $12.47 in June. 

The downward movement seemed to cause a breakdown from the $17 horizontal area. This is a crucial area since it had acted as resistance throughout 2018-2021. However, ETC bounced shortly afterwards and reclaimed the area, rendering the previous breakdown as only a deviation (red circle). 

The upward movement took the price to a descending resistance line that has been in place since Aug. There, it made its fifth breakout attempt (red icons). Since lines get weaker each time they are touched, an eventual breakout from this line is likely. 

Furthermore, the weekly RSI has moved above 50 (green icon). It remains to be seen if the indicator manages to hold on above this line or falls below it, similar to what occurred in April. If it manages to hold on above 50 and the price breaks out from the resistance line, it would confirm that a long-term bullish reversal is in place.

ETH Long-term
ETC/USDT Chart By TradingView

Ongoing upward movement

The daily chart shows that ETC broke out from a shorter-term descending resistance line on July 15. Afterward, it proceeded to increase by 165% in a period of 14 days. This led to a high of $45.36 on July 29. 

However, the price has been decreasing since. It is currently approaching the 0.5-0.618 Fib retracement support area between $25 and $29. This also coincides with a horizontal area that previously acted as support. So, it is likely that the price bounces once it gets there. 

Furthermore, the daily RSI has moved above 50, a sign that is associated with bullish trends.

ETC Breakout
ETC/USDT Chart By TradingView

ETC wave count analysis

Cryptocurrency trader @Altstreetbet tweeted a chart of ETC, stating that it is the first large cap altcoin to begin a bullish count.

ETC wave count
Source: Twitter

The most likely wave count suggests that since the June 18 low, ETC has completed a five-wave upward movement (white). Therefore, it has begun a new bullish trend. 

The ongoing decrease is likely part of an A-B-C corrective structure (black). The most likely area for the correction to end would be between the 0.5-0.618 Fib retracement support levels at $25-$29. 

Wave count
ETC/USDT Chart By TradingView

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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