Ethereum Classic Technical Analysis: February 10, 2020
February 10, 2020
Ethereum Classic is one of the best performers in the cryptocurrency market currently, the price of Ethereum Classic has advanced from $5 above $13 in less than several weeks and the current price stands around $11.3. 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. Although the price of this coin can weaken again 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 $12 and $13, $10 and $9 represent the strong support levels.
The crypto market goes through bullish and bearish phases that hugely influence the price of Ethereum Classic. Ethereum Classic has a strong resistance area at $13 and it would take a break above this level to confirm a new leg higher towards the $15 level. If the price drops below $10 support level that would be a “SELL” signal and the open way to $9. If you decide to invest in this cryptocurrency I would recommend you to be careful and to invest a small sum of money in Ethereum Classic, the best time period to keep Ethereum Classic in your portfolio is between 3-5 years. In the chart below we can see how did the price of Ethereum Classic performs 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 last several weeks have been very positive for the cryptocurrency market, all major cryptocurrencies have advanced and the price of Ethereum Classic was also supported by this situation. According to estimates, Ethereum Classic is one of the cryptocurrencies which you should definitely not ignore but in my opinion, this is still risky cryptocurrency. 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 the first resistance area at $12 and it would take a break above this level to confirm a new leg higher towards the $13 resistance level. If the price drops below $9 strong support that would be a strong “SELL” signal and the open way to $8.