Ethereum Classic Surges After Correction, Faces Price Resistance

The crypto market has experienced a surge in bullish sentiment, including Ethereum Classic (ETC), which has seen a 13% price increase within 24 hours followed by a correction, forming a symmetric triangle pattern indicating a bearish long-term trend. The MACD technical indicator suggests a decline in buying sentiment, while the averages show a mixed outlook for ETC.

Ethereum Classic Rallies after Bearish Correction, Faces Price Resistance

The cryptocurrency market has recently witnessed a surge in bullish sentiment, buoyed by positive developments in the industry. Among the notable performers has been Ethereum Classic (ETC), which has exhibited a significant increase in its valuation over the past day.

Following a period of bearish influence, the ETC price has rebounded with vigor, registering an impressive 13% gain in the last 24 hours. However, this upward momentum was met with a correctional phase, resulting in a temporary decline in the chart.

Technical Analysis

As the Ethereum Classic price began the month of March, it exhibited a strong bullish impetus, adding substantial value to its portfolio within the first week. After reaching a high of $39, the ascending momentum gradually subsided, giving way to a lateral trend for approximately a week.

However, market volatility soon intensified, causing the bulls to lose their grip on the price action. Ethereum Classic subsequently underwent a corrective phase, losing approximately 30% of its value. Subsequently, the bulls regained traction, leading to a reversal in the price action.

On 29th March, as the ETC price attempted to breach the resistance barrier of $34, it encountered significant resistance. This resistance led to the formation of a symmetrical triangle pattern, which has characterized the price movements since then, signaling a potential long-term bearish sentiment for this altcoin within the broader cryptocurrency landscape.

Technical Indicators

The Moving Average Convergence Divergence (MACD) indicator, a crucial technical indicator for assessing market momentum, reveals a decrease in the green histogram. This observation suggests a decline in buying sentiment within the cryptocurrency market. Additionally, the averages indicate a continuous ascent, implying a mixed sentiment in the crypto space.

Outlook

The future trajectory of Ethereum Classic hinges upon the market's ability to drive its price above the $34 resistance level. A successful breakout from the symmetrical triangle would herald a shift towards bullish influence, opening the path for a test of the upper resistance level of $36.50.

Conversely, a trend reversal would weaken the bulls, potentially causing a decline towards the lower support level of $31.25 during the following week.

Conclusion

The cryptocurrency market remains a dynamic and volatile environment, and Ethereum Classic is no exception. The altcoin has demonstrated resilience following a period of bearish influence, but it now faces challenges as it encounters price resistance. Whether it can break through these barriers and extend its bullish momentum remains to be seen, but traders should closely monitor the market conditions and technical indicators for guidance.