- Ethereum Classic bounces off descending trendline support to lead recovery in the crypto market.
- ETC/USD must break the confluence resistance at $6.8 to open the door for the remaining leg up to $7.0.
The entire cryptocurrency market is in the red except for a handful of altcoins such as Ethereum Classic that have been strong enough to record on the day. ETC is up on the day to trade at $6.70.
In spite of the 3% in gains, the cryptoasset is till trading within the confines of a descending channel. The channel support has been very instrumental to ETC in the past three weeks; ensuring that the downtrend is controlled. In conjunction with the 38.2% Fibonacci levels, the channel support cushioned the bulls from losses that would have refreshed levels around $6.0.
The ongoing bullish reversal has pulled ETC/USD above the 200-day SMA. The crypto is currently valued at $6.7 as bulls work extremely hard to clear the resistance at $6.8; a confluence formed by the 50% Fibo and the 50-day SMA.
As per the RSI, ETC recovery above $7.0 will not come as easy as expected. The indicator may stall at 50, thereby encouraging sideways trading. Besides, the MACD suggests that selling pressure is still present.
On the downside, support at the 23.6% Fibo will stay inline in the event of a reversal. If the channel support is broken, Ethereum Classic could plummet to test the next potential support at $6.0.
ETC/USD daily chart