- Ethereum Classic price crashed nearly 30% as the cryptocurrency market entered a selling spree.
- A combination of the 100 SMA at $75.45 and support barrier stretching from $72.31 to $81.67 provided a base for Wednesday’s crash.
- The downtrend scenario will go extinct if ETC produces a decisive close above $114.50.
Ethereum Classic price shows a quick run-up after a nasty crash on Wednesday’s trading session. ETC needs to climb past the demand levels and create a higher high to signal the start of a new uptrend.
Ethereum Classic gains in jeopardy
Ethereum Classic price dropped a whopping 30%, undoing most of its gains as it created lower highs and lower lows, a classic sign of a downtrend. During this crash, ETC sliced through the immediate demand zone that extends from $86.27 to $99.50 and found a stable base as it pierced the next support area, ranging from $72.31 to $81.67.
Interestingly the 100 four-hour Simple Moving Average (SMA) at $75.45 was pivotal in shouldering the downfall. Buyers scooped up Ethereum Classic at a discounted price, which has resulted in a 21% upswing so far.
Although the current setup for ETC price is bearish, investors can expect it to rally 20% to $110, coinciding with the 50 SMA. A decisive 4-hour candlestick close above $114.50 will signal an uptrend’s start. In such a case, ETC could surge another 12% to tag the swing high at $128.40.
ETC/USDT 4-hour chart
Until Ethereum Classic price closes above $114.50, market participants should consider it in a downtrend. The inability of buyers to push ETC beyond the level mentioned above will most likely result in a retest of the 100 SMA at $75.45.
A breakdown of which will be extremely bearish and could trigger a 30% freefall to the 200 SMA at $52.31.