Ethereum Classic (ETC/USD) has corrected from its early-month high of $65 to about $48, a decline approaching 30%. The coin is now trading along its supporting trendline, a level where it previously reversed direction. Traders expect a potential rebound because the RSI shows oversold conditions, but caution is warranted: ETC could still slip lower, so premature entries are risky.
Earlier in the month ETC gained as investors drew comparisons with Ethereum (ETH/USD), which set a new all-time high. However, ETC’s strength has not matched Ethereum’s, so traders should remain cautious.
Should you buy the dip in ETC?
Here’s what the charts indicate:
- ETC formed a symmetrical triangle and has now reached the lower supporting trendline. Over the past week the price tested this support several times. Each test weakens the support slightly, so a firm upward move is needed to restore confidence.
- A double bottom has formed at the support, coupled with RSI divergence, which often signals a possible reversal. This pattern adds to the case for a bounce if confirmed by price action.
- The RSI is currently in oversold territory but has begun to turn up, indicating that buyers may be returning gradually. Confirmation from price closing above short-term resistance would strengthen this signal.
- Investors must remain cautious because ETC could break down quickly. A long position should be taken only after a clear reversal is visible; entering long below the trendline is inadvisable. Wait for price confirmation, such as a decisive move above the triangle’s upper boundary or a sustained recovery off the trendline.
- A near-term target around $61 can be set if a recovery unfolds. Should a breakout materialize in the coming weeks, a move toward $76 is possible based on the triangle’s measured move and recent volatility.
- Use a stop-loss placed below the supporting trendline to manage downside risk. Position sizing and risk management are essential given the potential for further weakness.
In summary, ETC shows technical signs that favor a rebound—double bottom, RSI divergence, and oversold conditions—but the support has been tested multiple times and could fail. Traders seeking to buy the dip should wait for confirmation of a reversal and protect positions with a stop-loss beneath the trendline. If confirmed, upside targets near $61 and, on a decisive breakout, $76 could be achievable, but risk remains elevated until a sustainable recovery is established.