The ETC coin price has been on a downward trend for the past week, completing a negative trend within a falling channel. The price was rejected at the resistance trendline, leading to a 5% drop in the price of ETC over the last five days.
The falling price of Ethereum Classic warns of a prolonged selling spree if it breaks below the channel pattern.
Currently, the ETC prices struggle to take second support at the 50% Fibonacci level at $17.83. However, the price action still depicts a bullish flag pattern and maintains the positive reversal theory. The price action also depicts a double bottom forming at $17.83, increasing the reversal chances.
Additionally, the RSI and MACD indicators fail to display any bullish divergence to support a reversal theory. The RSI line falls trends lower than the halfway line with an uptick. Meanwhile, the MACD indicator shows a remarkable growth in bearish histograms.
Currently, the ETC price forms a doji candle at the support confluence of the 50% Fibonacci level and the support trendline. This projects a possibility of a morning star pattern formation, leading to a bull cycle within the channel to $18.75.
On an optimistic side note, the flag breakout rally can pump the ETH prices by 15% to challenge the overhead supply at $20.
On the flip side, a fall below the 50% Fibonacci level will plunge the ETC prices to $17.