Ethereum Classic (ETC) is facing major risks with a key support level at $14.30. If this is breached, the price could decline to $8 due to bearish momentum and declining trading volumes. Recent performance data demonstrates significant losses, making ETC one of the worst performers in the crypto market this year. Technical indicators suggest a strong downtrend, necessitating a robust defence at support to prevent further declines.
Ethereum Classic (ETC) is currently experiencing significant volatility and is under pressure, with analysts warning of a potential decline. The token is hovering near a crucial support level of $14.30, and if this support fails, it could plummet towards $8. This scenario is coupled with increasing bearish momentum and a notable decrease in trading volumes.
At the moment, ETC is trading at $14.82, reflecting a drop of over 2% for the day. Data from CoinMarketCap shows that the market capitalisation has receded to $2.24 billion, while the 24-hour trading volume has fallen by more than 12%, now sitting just above $80 million. These figures indicate a diminishing demand for the asset, as investor confidence appears to wane at current price levels.
The critical support level of $14.30 is facing scrutiny, as emphasized by crypto analyst Ali. His analysis indicates that breaking below this support could lead to a decline down to $8. His TradingView chart reveals a pronounced downward channel and a vacuum zone between $14 and $8, indicating little historical support that could mitigate a drastic price drop.
Performance metrics for Ethereum Classic are alarming, showing a decline of over 15% in the last month and more than 22% over six months. The year-to-date figures illustrate a steep decline of over 40%, culminating in a total drop of nearly 44% over the past year. Such extended losses position ETC among the poorest-performing assets within the top 50 cryptocurrencies this year.
From a technical viewpoint, the outlook remains pessimistic. The TradingView technical summary for the daily chart presently indicates a “Sell” signal for Ethereum Classic. Out of 26 indicators, 14 suggest sells, 10 are neutral, and merely 2 point to potential buys. This confirms a robust downtrend with minimal indications of a reversal on the horizon.
For Ethereum Classic to avert further declines, it is imperative that bulls maintain the $14.30 support level. A robust rebound from this price point, ideally accompanied by increasing trading volumes and a movement above $16, could potentially re-establish short-term momentum. However, given the prevailing bearish indicators and weakening market sentiment, such a rebound appears less likely without a fundamental catalyst to spur confidence.
