Ethereum Classic Falling Wedge indicating Potential for Growth
Ethereum Classic Price Analysis
Ethereum Classic has been one of the biggest winners in March 2022 after its 110 % rally from $25 to $52.66 between the 14th and 29th March.
Once the price could not break above the dashed white trend line, that has acted as resistance since August 2021 and with the overall bearish macro conditions, a huge selloff commenced with a decline in volume. This lead to the creation of a beautiful falling wedge pattern.
As of today, ETC has corrected more than 40% of its March rally and is now meandering around the 78.6% fibonacci retracement level.
ETC is now in a somewhat confined area, sandwhiched between the edges of the falling wedge and the dashed white trend line, which has acted as suppot before.
With the price hovering around the 78.6% fib level, ETC is at a potential reversal spot. However, I think that there is a good chance for a further downside given the decrease in volume the RSI still being slightly above the oversold territory, which is why I'm short-term bearish.
I expect ETC to dip below $30 and in a worst case scenario find support around $25-27.5 before seeing an actual reversal.
Once the price breaks through the upside of the falling wedge, we can position ourselves to take a long trade towards $40+.
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