The Ethereum Classic price is suffering a major meltdown. ETC price is trading at $28.87, which is 50% below its highest level last week. Similarly, Ethereum price has also dropped by more than 16% from its lowest level yesterday.
What happened: Ethereum Classic price is dropping as the sentiment in the cryptocurrencies industry soar. Indeed, other currencies like Bitcoin, Ethereum, and Binance Coin have all crashed.
As such, when the top currencies like BTC slides, the smaller ones like ETC tend to drop even further. That’s because many of the smaller ones have minimal utility. Retail traders just buy them as a proxy for the bigger and more expensive currencies.
In Ethereum Classic case, its price tends to do well when Ethereum rises and vice versa. Similarly, Bitcoin Cash also performs well when the main Bitcoin rises. So, what next for the ETC price?
Ethereum Classic Price Forecast
My last prediction of Ethereum Classic was wrong. In it, I wrote that the currency would likely have a bullish breakout pattern. I based this argument on a bullish pennant pattern that was forming but it didn’t play out well.
On the four-hour chart, we see that the price has declined sharply. We also see that the currency has formed a descending channel pattern. In my view, this pattern seems to be a bullish flag. It is now at the lower side of this flag.
Therefore, we should not rule out another bounce as investors target the upper side of the flag at $35. This prediction will be invalidated if the price manages to move below the lower side of the flag and the 61.8% retracement level at $$25.
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ETC price chart
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