Ethereum Classic (ETC/USD) is locked in a tight range
The critical resistance is located on the approach to $4.00.
Ethereum Classic, now the 24th largest digital asset with the current market value of $434 million and an average daily trading volume of $456 billion, has lost nearly 5% of its value in recent 24 hours, moving in sync with the market. At the time of writing, ETC/USD is changing hands at $3.75.
ETC/USD, the technical picture
ETC/USD bottomed at $3.55 on November 25. While the coin managed to recover since that time, it is still locked in a tight range limited by $3.88 (the middle line of the daily Bollinger Band), and psychological $4.00. Once this resistance area is passed, thee recovery may be extended towards SMA50 (Simple Moving Average) daily at $4.40. The price has stayed below this MA since November 15. A sustainable move higher will create strong bullish momentum and allow for a move towards SMA100 daily at $4.90 and psychological $5.00.
On the downside, keep an eye on the recent low of $3.55. This is also the lowest level since December 2018. A sustainable move below this support may trigger panic selling and push ETH as low as $3.00 in now time. Considering the upcoming holiday season, low liquidity conditions may result in sharp movements across the market.
