Ethereum Classic and Bitcoin Cash: Cryptos Experience the Worst Selloff in History
Ethereum Classic (ETC) price analysis
There was an upside trend that ensued during the weekend session last week. Consequently, the uptrend was continued on Monday and Ethereum Classic price broke above the resistance level at $14.00, however, the upside was capped below $14.50. The bulls lacked the momentum to push the price above this level, paving the way for sharp declines.
The short-term support at $14.20 could not hold the price during the declines. ETC/USD broke below the next support level at $13.5 before finding another weak support at $13.32. Currently, Ethereum Classic is testing the 100 SMA ($13.62). The 50% Fib retracement level with the last swing high of $14.38 and a low of $13.01 failed to prevent declines in the recent declines. However, the retracement level will offer resistance to the upside as the price corrects higher.
A bullish momentum is forming at $13.59 as the RSI is moving from the oversold regions to signal that more buyers are entering the market. Similarly, the Stochastic is pointing upwards to show that buying pressure is rising. Significantly, ETC/USD has broken above the 61.8% Fib retracement level with the last swing high of $14.28 and a low $13.01. The price must maintain this level to avoid further declines. However, the major support for Ethereum Classic price is at $13.01.
Although Ethereum Classic has been affected by the recent bearish wave in the cryptocurrency marker, its market capitalization has remained steady above $1.3 billion even going higher on some days. However, the trading volumes have gone down from $106,000,000 to $94,279,200 recorded on Monday 9.
Bitcoin Cash (BCH) Price Analysis
The price gained momentum after trading lows of $600 on Friday last week. Bitcoin Cash price sustained gains in an ascending channel and even broke above the 61.8% Fibonacci retracement level with the previous swing high of $715 and a low $600. The upside gains were, however, capped at $680; opening the door for sharp declines.
broke below key support areas during the declines on Monday $650 and $640 respectively. The price is currently testing the 38.2% Fibonacci retracement level with the previous swing high of $715 and a low of $600. There is a bullish momentum forming around $645 as the gap between the 100 and the 200 Simple Moving Averages narrows. The RSI is pulling further from the oversold levels to signal that there is the presence of buying pressure in the market. Similarly, the MACD is dipping into the positive territory to confirm that the bulls are gunning to push the price higher.
On the downside, the immediate support for Bitcoin Cash price is between $438 (100 SMA) and $628 (23.6% Fibo). BCH/USD must keep above this zone to avoid more declines towards the major support at $600. On the upside, the price will encounter increased selling pressure at $680 as it corrects higher towards $700.
Cryptocurrency Market Status
The recent selloff in the cryptocurrency market has been explained by the industry’s top analyst Tom Lee to be as a result of investors taking profits due to the tax deadline in mid-April. He also predicted that cryptocurrencies will have a better second quarter after recording the worst selloff in the history of cryptocurrencies during the first quarter. Similarly, regulations have had a toll on the digital assets, for instance, the recent decision by the Indian government to abolish support for cryptocurrency related businesses.