Sun. Aug 7th, 2022

The cryptocurrency market is advancing at the beginning of this week and all major cryptos advanced between 5-10%. The price of the Ethereum Classic has advanced from $4.8 above $5.8 in less than five days and the current price stands around $5.6. Starting life as Ethereum, Ethereum Classic is a peer-to-peer computing platform and the main advantage of this cryptocurrency is that this platform is more secure compared to Ethereum’s platform. Ethereum Classic has its token ETC and according to analysts, this cryptocurrency might still be undervalued despite all current problems. Ethereum Classic is the result of a long debate over how cryptocurrencies should handle disagreements within the community and data hacks. In my opinion, this is still very risky cryptocurrency but Ethereum Classic can be a very good investment option and some predictions say that this cryptocurrency could be above $50 in the next several years. In the chart below (a period from February 2019), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $6 and $7, $5 and $4 represent the current support levels.

We can also notice that the price of Ethereum Classic has been moving in the downtrend for the last six months and the current recovery could not be considered the end of this trend. The crypto market goes through bullish and bearish phases that hugely influence the price of Ethereum Classic. Ethereum Classic remains in the bearish phase but if the price advances above $7 it could be a good sign of the trend reversal. If the price drops below $4 strong support that would be a strong “SELL” signal and the open way to $3. In the chart below we can see how did the price of Ethereum Classic perform in the last 30 days. On this chart, I have marked a “trendline” and if the price drops below this trendline that will be a “SELL” signal.

Recommendation: The price of Ethereum Classic is still far away from the major Ethereum Classic price predictions but according to the rules of technical analysis, the “bearish” trend of this cryptocurrency is still very strong. It is very hard to explain the actual value of Ethereum Classic and because of that, I would recommend everybody to be careful with investing in this cryptocurrency. Ethereum Classic has a short-term resistance area at $6 and it would take a break above this level to confirm a new leg higher towards the $7 resistance level. If the price jumps above $10 that could be a very good opportunity for the short term traders, short-term traders can put the stop-loss at $9 and take profit at $12 or above. If the price drops below $4 strong support that would be a strong “SELL” signal and the open way to $3.