Ethereum Classic Price Prediction: ETC appears overbought, 40% decline looming

  • Ethereum Classic price prediction highlights ETC’s 17 percent price surge in the last 24-hours.
  • The latest price surge saw Ethereum Classic move past the $80 upper limit supply zone.
  • The Momentum Reversal Indicator (MRI) is flashing sell signals on the 12-hour price chart, signaling a looming selling spree.
  • Ethereum Classic could drop 40 percent past crucial support levels towards the $46.5 price region.

On looking at Ethereum Classic’s 48-hour price chart, it is clear the crypto coin has witnessed a stellar price movement that has pushed it close to pre-crash levels. Despite its impressive rally, critical technical indicators suggest the crypto coin might be in for a significant price reversal.

Ethereum Classic Price Prediction: General price overview

Ethereum Classic managed to send shock waves in the market during Tuesday’s trading session by recording an impressive 43 percent upsurge. The massive price recovery established Ethereum Classic on an excellent path to deal with these months’ declining trend line moving forward.

The month of May has not been the best for Ethereum Classic investors as it has been a month of significant reversals of fortunes. For instance, Ethereum Classic took a shocking 55 percent price dip on an intra-day basis and a stunning 78 percent dip from its recent $158.8 milestone recorded on May 6. The May price decline follows Ethereum Classic’s 6-week price rally that saw the crypto surge by over 1200 percent. This rally commenced when Ethereum Classic broke out of its symmetrical pattern at the beginning of April.

On May 23, the crypto coin further recorded adverse price movements that saw ETC settle close to the May 19 low of $40. Luckily, the price dip was short-lived as the crypto rebounded to close the day above 2018’s $47 high. Additionally, last week’s trading session saw the crypto coin register the most extensive weekly loss since 2016; ETC settled at around $44.83.

Ethereum Classic price movement in the past 24 hours

Ethereum Classic Price Prediction: ETC appears overbought, 40% decline looming 1
Source: TradingView

At the time of writing, Ethereum classic is exchanging hands at around $77.45, marking an 8 percent decline from the intra-day high of $82.72. This price movement has pushed the crypto coin to levitate within the supply zone that ranges from $59.44 to $80. If Ethereum Classic closes the day above its $80 6-hour candlestick, it will spell the beginning of a bull run. However, the Momentum Reversal Indicator (MRI) is flashing reversal price signals, indicating Ethereum Classic is in for further price declines. A red candlestick represents the price reversal signal in the 4-hour price chart.

Ethereum Classic 4-hour chart

Ethereum Classic Price Prediction: ETC appears overbought, 40% decline looming 2
Source: TradingView

According to the 4-hour price chart, the red candlestick signifies Ethereum Classic’s price rally has hit its peak. Investors should keep this in mind as Ethereum Classic is likely to register a 1-to-4 candlestick price correction in the near term. Therefore, the best course of action now for buyers is booking of profits. Although this would cushion short-term investors from losses, such a move would push ETC below the supply zone mentioned above, delaying any potential rally.

With the Relative Strength Index moving downwards towards the midline, a potential surge in selling and overhead pressure could push Ethereum Classic towards its $59.44 support level. This would mark a 37 percent price decline. If the selling pressure persists, ETC would be staring at a 40 percent price dip that could send it towards the $46 price region.

Conclusion

Despite the bearish projection, if Ethereum Classic bulls manage to maintain significant buying pressure, the crypto asset could surge upwards past the $95.70 price region. Such a price action would register a higher high that would signify the start of a new bull run. In such as case, Ethereum Classic could appreciate by 20 percent to challenge significant resistance barriers around the $114 price region.

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