- Ethereum Classic price has formed a double-top pattern.
- In price action analysis, this pattern is usually a bearish sign.
Ethereum Classic price pulled back on Monday as concerns about the slowing Chinese economy roiled the financial market. ETC dropped to a low of $40, which was slightly below this month’s high of $45. Its market cap has dropped to a low of $5.8 billion.
Why is ETC retreating?
Ethereum Classic is a leading blockchain project that emerged from Ethereum’s hard fork in 2017. It is a proof-of-work (PoW) platform that helps developers use to build decentralized finance (DeFi) applications.
Ethereum Classic uses the same technology as the main Ethereum. As a result, users can use its platform to build decentralized applications (dApps) in all areas like finance, gaming, metaverse, and non-fungible token (NFT).
Some of the top apps built in Ethereum Classic are CoinRabbit, Canonical Wrapped Ether, Token Factory, Classic Rewards, and The Man Who Sold the World.
Ethereum and Ethereum Classic will soon go in different routes as the latter moves to become a proof-of-stake (PoS) platform. As a PoS blockchain, it will become a significantly faster platform with significantly lower costs for users and developers.
Learn more about how to buy Ethereum.
ETC price has done well in the past few weeks as investors wait for the upcoming Ethereum merge. Some investors believe that the ecosystem will grow after the merge happens because of the security of the proof-of-work (PoW) platform.
Ethereum Classic price declined on Monday in line with the performance of other coins. Bitcoin, Ethereum, Ripple, and BNB have all retreated by more than 5% in the past 24 hours. This sell-off is also in sync with that of other asset classes like stocks. Dow Jones and S&P 500 futures declined by more than 0.50%.
This performance is mostly because of the weak macro data from China. The National Bureau of Statistics (NBS) said that the country’s industrial production and fixed asset investments declined sharply in July. As a result, the People’s Bank of China decided to cut two important interest rates.
Ethereum Classic price prediction
The four-hour chart shows that the ETC price formed a double-top pattern at $45.33. In price action analysis, this pattern is usually a bearish signal. It has moved to the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved slightly below the neutral point of 50.
Therefore, the coin will likely continue retreating as sellers target the next key support level at $32.26. A move above the resistance level at $45 will invalidate the bearish view.
