Ethereum Classic (ETC) Attempts Comeback After Bearish Pattern Sends Price Down 40%

Key Takeaways

• Ethereum Classic (ETC) has created a double-top pattern.
• The price risks breaking down from the $25 support area.
• Can Ethereum Classic bounce and prevent this breakdown?

Ethereum Classic (ETC) started a rally in November 2024, reaching a new yearly high of $41.75 on Dec. 4. Unfortunately, this was the high point of the cycle since ETC has fallen by 40% since.

2025 started positively with a breakout above resistance, but the upward movement could not be sustained, and the price now risks breaking down from its main horizontal support at $25.

Will ETC break down, or can it muster enough strength to prevent new lows? Let’s find out.

ETC Creates Double-Top

The weekly time frame ETC chart shows that the price has created a double top pattern at the $37.50 horizontal resistance area (black icons). The price has traded below this area since 2022.

ETC has fallen by 40% since completing the double top pattern, leaving a long upper wick in its wake. The price is approaching a long-term ascending support trend line at $20. The trend line has existed since June 2022, so it is imperative that the price trades above it to maintain its bullish trend.

However, technical indicators are bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have generated bearish divergences (green), which reiterate the bearish trend when combined with the double-top pattern.

So, the weekly time frame suggests that ETC will continue falling toward the ascending support trend line at $20.

More Downside Ahead?

The daily time frame chart aligns with the weekly one, suggesting the ETC price is still in a bearish trend. ETC broke out from a descending resistance trend line at the start of the year.

However, it failed to sustain the increase. Rather, the 0.382 Fibonacci retracement resistance level rejected it (black icons), triggering a downward movement.

ETC currently trades inside the $25 horizontal support area. If it breaks down, the price can plunge another 20%, reaching the next closest support at $20.20. This support level would also align with the long-term ascending support trend line.

Technical indicators have also turned bearish. While the RSI and MACD generated bullish divergences before the upward movements, they risk breaking down. Also, the RSI fell below 50 while the MACD made a bearish cross.

So, the daily time frame readings align with the weekly ones, suggesting the ETC price will break down and fall to new lows.

Reclaiming the 0.382 Fibonacci resistance at $29.42 will invalidate this bearish ETC prediction. This currently seems unlikely.

ETC to $20

The ETC price failed to sustain its long-term breakout in December 2024 and has fallen under a descending resistance trend line since.

While the price briefly regained its footing with a breakout, that was short-lived, leading to a retest of the breakout level. If the ETC price breaks down, it could fall another 20% to the confluence of supports at $20.