- The Ethereum Classic price crossed the high of $ 62.65 but could not hold above it.
- ETC price is likely to fall back to $ 51.53 and possibly to support at $ 48.85.
- A closing price above $ 62.65 would invalidate the downside thesis and initiate a new uptrend.
Ethereum Classic price is currently on the retreat after failing to break the swing high in trading range. The inability of the buyers has resulted in a retracement that could extend to the immediate support levels and eventually to the equilibrium point.
Ethereum Classic: Correction is imminent
The price of Ethereum Classic rose 67% between July 20 and August 8, briefly breaking the high at $ 62.65. While the rebound was impressive, the failure to close above $ 62.65 suggests a setback is likely as investors rush to take profits.
So far, ETC has broken the immediate support level at $ 57.57 and is now struggling to get it back. Failure to do so, market participants should expect ETC to fall back to subsequent demand levels at $ 51.53, a decrease of approximately 10% from $ 57.57.
If the sell orders continue to pile up, the price of Ethereum Classic will drop to $ 47.42. This is a 17% decrease from $ 57.57.
While a retest of the $ 47.42 support level is plausible, the August 5th swing low of $ 48.79 is where a reversal is likely to take place.
ETC / USDT 4-hour chart
Regardless of the bearish outlook, if the big cryptocurrency makes a U-turn, the altcoins will surely catch up. In this case, the price of Ethereum Classic must break the $ 57.57 mark and turn it into a support barrier. This move would confirm a resurgence in buyers and prompt ETC to make another attempt to break the high of the trading range at $ 62.65.
A candlestick close above this level would dent the bullish outlook and in some cases push the altcoin up 7% to retest the $ 67.34 resistance level.