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Ethereum Classic has formed higher highs and lower lows to create an ascending channel in its 1 hour time interval. The price made a sharp climb to the top of the Coinbase and Robinhood list, but has since rebounded.
Applying the Fibonacci retracement tool to the last high and low swing shows that Ethereum Classic is still within the correction territory, so there is a good chance the bulls could still come back. The price is testing 61.8% of Fib, which is just above the bottom of the channel around $ 34 and is close to the dynamic decline points of moving averages.
If these levels are in support, the price may return to the top channel around $ 21, which is also the swing. The 100 SMA is above the long-term SMA 200, so the path of least resistance is on the upside. This means that the upward trend is more likely to resume rather than reverse.
RSI is falling but seems ready to go back when it comes close to oversold levels. Stochastic is already indicating oversold conditions and becoming higher up could bring buyers back. A break below the channel support, however, could expose Ethereum Classic to further losses.
This week the cryptocurrencies have had a rough turn in general, and it did not work to help the SEC release a warning on its decision to delay the decision on an application of bitcoin ETFs. This threw more doubts on the industry, which seems to move on the tone of the FUD (Fear, Uncertainty, Doubt) these days.
Ethereum Classic and its peers could use another set of positive updates to resume their gains, although ETC is currently supported by higher volume expectations and increased activity by the Coinbase and Robinhood listings.
However, ETC surpassed a handful of altcoins to land in 11th place in the cryptocurrency ranking after having previously circumvented the sixteenth place.
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