Ethereum Classic ETC price seems to have hit a dead end as the buying pressure vanishes while sell signals pop up.
Ethereum Classic ETC price favors the sellers on the daily chart, as the Momentum Reversal Indicator has flashed a sell signal in the form of a red ‘one’ candlestick pattern on May 5. This setup forecasts a one-to-four candlestick correction.
Although the price bulls have set up a new all-time high on Thursday, investors should expect a short-term pullback.
The development of candlesticks pattern with tiny bodies in lockstep on the 4-hour chart adds credence to the bearish scenario explained above. Such a formation indicates a tussle between the buyers and sellers and suggests that the ETC bullish momentum has dried up.
A failure to push past the 127.2% Fibonacci retracement support level at $96.94 will lead to a 15% retracement to the demand zone that stretches from a price of $72.23 to $79.37.
This move will allow the short-term sellers to go extinct, allowing buyers to take the ETC price on another exponential rally to $112.74, which is a 42% upswing from the support barrier’s upper layer.
If this upswing continues, the ETC price might also tag the 161.8% Fibonacci extension level at $140.05.
The short-term scenario for Ethereum Classic ETC price seems to be bearish, but if bulls come to the rescue, ETC price could retest its all-time high and even surge past it.
However, a breakdown of $72.23 will trigger a full-blown downtrend that could extend ETC’s descent by another 20% to the price of $57.81, coinciding with the 78.6% Fibonacci retracement level.
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