The last several months have been very negative for the cryptocurrency market, all major cryptocurrencies have weakened and the price of Ethereum Classic was also pressured by this situation. 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. According to the latest news, China could start to use a cryptocurrency reward system for army personnel. Chinese soldiers will be rewarded in cryptocurrency and this is certainly positive news for the future of cryptocurrencies. The price of Ethereum Classic currently stands around $4.6 and the first strong sign of recovery could be if the price jumps above $7. Although the price can weaken even more putting a reasonable amount of money into Ethereum Classic could potentially turn out to be a very good investment. In the chart below (a period from December 2018), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $5, $6 and $7, $4 represents the strong support level.
We can also notice that the price of Ethereum Classic has weakened from $7 to $4.2 in less than 90 days and the current recovery could not be considered the end of this trend. The cryptocurrency market volatility is also one of the things that scares investors away and this is one of the reasons why the market is under the pressure. 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.
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 $5 and it would take a break above this level to confirm a new leg higher towards the $6 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.