Ethereum Classic recently fell through support around 10.500 and dipped to the 9.060 level. From there a pullback ensued, taking price to the broken support turned resistance.
The correction still seems to be in play, though, as Ethereum Classic hasn’t formed new lows after the bounce. Price is back to the 38.2% retracement level where sellers might be waiting. A larger pullback could lead to another test of the 50% Fib near the 200 SMA dynamic inflection point while the 61.8% level just below the 11.000 mark might be the line in the sand for a correction.
On the subject of moving averages, the 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Price is also currently testing the 100 SMA dynamic inflection point, which might be enough to keep gains in check.
Stochastic is still on the move up, though, so there may be some buying pressure left in play. This oscillator has plenty of room to climb before indicating overbought conditions or that buyers are exhausted. RSI is closer to this level but has yet to turn lower to suggest that sellers are taking over.
Ethereum Classic has been one of the better-performing altcoins over the past 24 hours as the spotlight has turned to ICO regulation. But instead of fearing that it could weigh on Ethereum Classic price, traders turned bullish on this digital asset since it is one of the most reliable ones out there.
The SEC launched a FinTech portal to help it communicate better with participants in the space, looking forward to regulating ICOs in a way that helps them thrive while protecting investors. As it mentioned:
Companies and individuals are increasingly considering initial coin offerings (ICOs) as a way to raise capital or participate in investment opportunities. While these digital assets and the technology behind them may present a new and efficient means for carrying out financial transactions, they also bring increased risk of fraud and manipulation because the markets for these assets are less regulated than traditional capital markets. That’s why we are providing this information about the three “Rs” of ICOs: Risks, Rewards and Responsibilities.