Ethereum Classic’s value surged by 70% before encountering profit-taking, indicating signs of buyer exhaustion and a potential peak. There’s a likelihood of a 15% pullback, seeking support around $24.78, a key level marked by the significant Fibonacci level of 61.8%. The bearish scenario could be invalidated if the price achieves a higher high, surpassing $32.29. Notably, Ethereum Classic (ETC) has experienced substantial gains, notably benefiting from the approval of spot Bitcoin exchange-traded funds (ETFs). The capital shift from BTC to altcoins has favored specific projects, with ETC emerging as one of the primary beneficiaries.
Ethereum Classic’s value is poised for a 15% decline following an extensive rally.
Since January 8, Ethereum Classic (ETC) has surged nearly 75%, overcoming obstacles from the past several months and reclaiming levels last seen in September 2022. However, following this significant overbuying, there’s a potential correction underway, threatening a 15% retracement for token holders.
The Relative Strength Index (RSI) at 76 underscores the overbought conditions, signaling a likely correction. Additionally, the price has breached the upper band of the Bollinger indicator, a move often preceding a pullback due to excessive price elevation.
This correction aligns with the concept of mean reversion, which posits that a substantial deviation of the price from the mean or average eventually prompts a return to the mean price.
In line with this, Ethereum Classic’s price may decline, dropping below the 78.6% Fibonacci level at $28.10. A further descent could lead the altcoin below the upper band of the Bollinger indicator at $26.33, testing the critical Fibonacci level of 61.8% at $24.78.
In a more severe scenario, the Ethereum Classic price might fall below the 50% Fibonacci level, not only negating the existing bullish outlook but also testing the Bollinger indicator’s centerline at $21.91. If this level fails as support, it could push the altcoin down to the 38.2% Fibonacci level at $20.11 or, potentially, the 23.6% retracement at $17.22.
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Conversely, with the Awesome Oscillator (AO) rebounding above the midline and displaying positive momentum through green histogram bars, the bulls are actively engaged, presenting a potential positive outlook for Ethereum Classic’s price.
If bullish activity continues to intensify, there’s a possibility for Ethereum Classic’s price to trend upward, expanding within the market range and achieving a new peak beyond $32.29. The bearish scenario would be negated if there is a clear and decisive candlestick closure above this level.