Ethereum Classic (ETC) has been a good performer in the last few months contrary to investor expectations and past experiences. It seems that the new leadership under ETC Labs is doing enough to convince investors that the cryptocurrency has a promising future and it has here to stay despite the ETC Dev shutdown or the recent 51% attack. The daily chart for ETC/USD shows that it rallied better compared to most cryptocurrencies and doubled in price from its December, 2018 low. That being said ETC/USD has faced a clear rejection at the top of the ascending channel it has been trading in for the past few months. The price now trading below its 200 day EMA and is ready to decline towards the bottom of the ascending channel.
The daily RSI also shows that the price is near overbought territory and will now have to decline to the bottom of the ascending channel. However, the Stochastic RSI tells a different story. It shows that the price may not decline directly towards its trend line support because there is still ample room for a retest of the trend line resistance. For this to happen, the price would have to climb above the 200 week EMA but so far it does not seem likely. If the price closes below the 21 day EMA, we could see Ethereum Classic (ETC) decline sharply towards the bottom of the ascending channel. So far, it is holding well above that level and has already closed yesterday’s daily candle above it. ETC/USD might trade sideways for a few days but sooner or later, it will have to either break past the 200 day EMA (bullish) or break below the 21 day EMA (bearish).