- Ethereum Classic holds above a key ascending channel after losses extended under $7.00.
- ETC/USD eyes consolidation before bulls action the impending rally to $8.00.
Ethereum has slowed down the uptrend after bulls slumped into a barrier at $8.00. The reversal from the new yearly high appears to have found support at $6.40 and ETC is resuming the momentum to recover from the dip. At the moment, the cryptoasset is trading at $6.63. In the bullish camp, all eyes are glued on $7.00. If the resistance at this zone is broken, the path to $8.00 will be relatively smooth.
A glance at the technical levels suggests that Ethereum is done with the downside. The short term support at $6.40 is in place in addition to the major buyer congestion at $6.00. Meanwhile, the RSI is leveling at 45 following a consistent breakdown from highs around 80 (at the beginning of August). In other words, ETC could most likely settle for consolidation in order to allow the bulls to gather strength for a breakout beyond $7.00.
Ethereum Classic’s immediate upside is limited by the 200-day SMA ahead of the 50-day resistance at $6.79. In spite of the losses incurred from $8.00, ETC’s bullish case is still intact. Note that the long term ascending trendline is also in position.