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    Ethereum Classic Went for Another Resistance Approach, What’s Next?

    Pathik Bhattacharya
    Pathik Bhattacharya
    Published on November 25, 2022 4:43 PM

    Updated on January 10, 2023 1:03 PM

    Ethereum Classic jumped 6% to retrace the $20 mark supported by ETH whales. ETC further broke out the descending triangle to reclaim the month-high position.
    Ethereum Classic Went for Another Resistance Approach, What’s Next?
    Source: Forbes

    Ethereum Classic is another Ethereum altcoin that is still working on PoW consensus. The price action tells a different story for Ethereum classic's future. After the FTX fiasco, the market dissociated heavily. Various investors' funds were exhausted during the crypto market turmoil.

    Ethereum Classic was removed from the ongoing development of Ethereum, which resulted in the making of another native token ETC.

    The current price of Ethereum Classic (ETC), the network's native currency, is near about $20, which is around 88% lower than its all-time high price of $179 in May 2021. In terms of price action, Ethereum Classic had a spectacular 2021. However, 2022 was most likely a disaster because the Ethereum Classic token price has been falling all year.

    The graph maintains a slow-paced down channel. The ETC trading price tested the down slopping resistance(Yellow line) two times on 23 Nov and 24 Nov but failed to break.

     Moreover, the down-sloping support was tested four times once on 21 Oct, 9 and 10 Nov, and on 21 Nov. The price action of ETC moved almost six times between the highs and lows but maintained a steady price fluctuation since FTX's bankruptcy.

    Source: Tradingview

    The Relative strength index shows that the digital currency is slightly above the overbought region. The score shows a 45 RSI mark which is considered stable. 

    The MACD indicator shows a slight bullish move as the signalling 9 MA line is going above the zero line or long position. 

    Source: Tradingview

    The Deceiving Descending Triangle Pattern

    More often, even historical bearish patterns could be converted into bullish indicators. On 22 Nov, the bearish descending triangle pattern was broken by the ETC which makes the market more confusing and at the same time bullish. On 22 Nov at 13:30 GMT, the price moved from $17.66 to $18.66 and further to $20 soaring almost 7%.

     

    Source: Santiment

    This price movement showed the bullish stance of the ETC market which was supported by Ethereum whales.

    According to data analytics firm Santiment, the development activity of ETC has risen to a level high and recently declined slightly. The development activity surged from 52 to 56 from the previous month, a direct increment of 7% in the last 30 days but down 0.23% on a 24-hr chart. However, the developer count has recently decreased to mere 3 devs operating and contributing to the protocol. The decline in development activity could one of the possible reasons for the price downturn these days.

     

    Source: Santiment

    The volume has decreased to 26%, as per CoinMarketCap’s data. The market cap surged to 0.36% in a 24-hr chart.