Ethereum Classic price falls 61.8% Fibonacci retracement in four days.
Daily volume shows no signs of panic selling.
Social media is reporting aggressive declines from the previous average.
Ethereum Classic price resolves the downward pennant continuation pattern on relatively small volume after three consecutive inside days on the histogram. Residual selling pressure could dampen bounce attempts, but if a new low is printed, it should be the ultimate.
Ethereum Classic Price Quietly Solves Overbought Problem
From May 2 to May 6, the Ethereum Classic price bounced 200% from the continuation contraction pattern, which is by far the best 4-day gain since trading began in 2016. At the same time, the rally almost marked a 361.8% Fibonacci extension. from the decline in 2018 to $ 161.33.
The depth of a pullback of up to 40%, combined with minimal accompanying volume, underlines the relative calm among investors and explains the fall more as a technical overbought than an aggressive exit.
In the future, the price of Ethereum Classic will fluctuate, as is usually the case with minimal processes. However, a rally above $ 129.64 would confirm a solid bottom and a resumption of a broader bull run.
A rally above $ 129.64 should trigger an acceleration in the rebound, with the Ethereum Classic price peaking on May 6 at $ 158.76. Speculators should expect some resistance just above the 361.8% extension of the 2018 fall to $ 161.33 ahead of a push to new highs. Additional resistance will be found as the expansion of the current 161.8% fall to $ 200.29 and the 461.8% expansion of the 2018 fall to $ 205.01 merge.
ETC / USD 12-hour chart
The bottoming process remains unchanged unless the May 10 low of $ 91.54 is cut on the daily close. That would mean a trickier bottom is forming or worse, a deeper pullback, perhaps at the 78.6% retracement of the $ 71.33 rally in early May.
Beware of a collective selloff, an event that will negatively impact the price of Ethereum Classic, especially if low Ethereum prices are causing the decline.
Santiment’s social volume metric tracks ETC mentions in over 1,000 cryptocurrency social media channels, ranging from discord groups, cryptocurrency sub-loans, Telegram groups, and private trader chats. At its peak on May 6, there were over 3,000 mentions on social media, up from 182 on May 2, the day the price of Ethereum Classic soared from its baseline. It peaked at 1500% in four days.
Since its peak on May 6, social media mentions have returned to 501, down 83% and approaching an average of around 380.
ETC related social media mentions
Social media bursts consistently coincide with local highs or even significant highs. However, the rapid drop in ETC suggests speculators have already ditched the cryptocurrency, which is a new source of pressure from buyers if the price of Ethereum Classic hits new highs.