Explaining Ethereum Classic Price Drop – Bulls Have Gathered, Defending Further Price Drop.

2021-12-09 | Daniel Smith

Explaining Ethereum Classic Price Drop – Bulls Have Gathered, Defending Further Price Drop.

Earlier on Saturday, Ethereum Classic had a severe 23 percent flash drop in conjunction with Bitcoin and Ethereum, which plunged roughly 15% and 21%, correspondingly, within the same time period. While Ethereum has recovered all of its losses from that day, Ethereum Classic and Bitcoin have failed to recover appreciably and have fallen into bearish patterns on the daily chart. ETC bulls have a chance to negate the pattern if they can gain enough dominance to signal a new trend is ready to commence.

Chart of Ethereum Classic

When Ethereum Classic plunged on Saturday, it neared $36, a level at which it had not traded since April. Bulls entered the market and purchased the drop, and the cryptocurrency recovered 30 percent from the level to complete the 24-hour trading session at $39.44. Since then, the cryptocurrency has traded within a $6 range while increasing marginally overall. The rapid drop along with the modest upwards consolidation has placed Ethereum Classic into a probable bear flag pattern on the daily chart, with the pole formed between December 1 and December 4 and the flag forming on Sunday. If the cryptocurrency breaks bearishly from the flag formation, traders should look for increased volume to see if the pattern was recognized.

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ETC/USD  1 DAY PRICE CHART: SOURCE – COINMARKTCAP.COM

An encouraging indicator on the Ethereum Classic Chart is that the cryptocurrency has taken the initial steps toward proving an uptrend is in the works. ETC has surpassed Sunday’s high-of-the-day high of $40.83, as well as Saturday’s low-of-the-day low of $30.30. If the upswing is to persist, ETC must produce a higher low than the Dec. 6 low-of-day. ETC is trading far below eight-day and twenty-one-day exponential moving averages (EMAs), with the eight-day EMA falling lower than the twenty-one-day, both indicating a negative trend. The cryptocurrency is also trading below the 50-day simple moving average, indicating a negative longer-term outlook.

Bulls hope to see large amounts of bullish activity enter the market and push Ethereum Classic above the eight-day moving average, which would nullify the bear flag pattern. Above, there is resistance at $44.66 and $50.55.

At the reporting time, ETC is presently trading at a price of around $39.65 USD, which is 1.60% down for the day.

Bears would like to see huge negative volume come in and knock the coin out of the bull flag pattern, as well as momentum to push Ethereum Classic below support at $32.17. Below the level, more support may be found just over the $27 mark.

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