Ethereum Classic ETC price continues the corrective decline, searching for a catalyst to unlock it from the doldrums. The pattern’s upper boundary penetration on June 9 is a good start, but the lack of continuation has disheartened the bullish Ethereum Classic investors. A change in the environment of the cryptocurrency complex may be needed to kickstart the stalled opportunity.

To review, ETC plummeted 75% from the May 6 high at a price of $158.76 to the May 19 low at $40.00, including a one-day plunge of 55% on May 19. The expansive downside trend volatility was a significant break from the previous six weeks, where ETC price frantically climbed 1,200% after releasing from a symmetrical triangle. Nevertheless, the Ethereum Classic price still closed with a 90% gain in May.

Ethereum Classic price is at the crossroads of indecision

A big benefit of the historic price correction and drift lower since May 25 has been the elimination of the extreme overbought readings on the daily and weekly Relative Strength Index. It is important because it positions Ethereum Classic ETC price to have the runway to extend a rally’s momentum, thus delivering a better return for patient investors.

The recent Ethereum Classic ETC price descent stabilized on June 8 with a bullish hammer candlestick pattern level that successfully triggered the following day with a close above the hammer high price of $59.55. It was a noteworthy technical development that encouraged ETC investors to be prepared for further gains, but yesterday’s adverse price action subdued the emerging opportunity. Nevertheless, the ETC price remains above the channel’s upper boundary, suggesting a mild support level of relative strength.

Unless Ethereum Classic's price drops below the June 9 low at the price of $53.03, the near-term bias is tilted higher. The first resistance level appears at the flatlining 50-day simple moving average at a price of $69.09, rewarding investors with a 20% gain from the current price.

The next tactically important resistance level is the 38.2% Fibonacci retracement at a price of $85.36. The support level is critical because it aligns with an area of price congestion accumulated during the May 12-18 time period. The trade volume will need to substantially improve for ETC to overpower the resistance. Even if unsuccessful, the Ethereum Classic price will have attained a 50% gain from the current price.

It is easy to be attracted to sizeable gains like 50%, but in the context of the current environment, a price rally of 20% to the 50-day SMA would be a valued boost to any portfolio.

A decline below the June 9 low at a price of $53.03 restores a neutral bias and exposes Ethereum Classic to a test of the omnipresent 2018 high at a price of $46.98, delivering a 20% loss from the current price. If Ethereum Classic sweeps below that price level, it will find some support at the 78.6% retracement at $43.03.

The May 19 and 23 lows should cap losses, or ETC price may decline to the 200-day SMA at $25.96.

During the early May parabolic move, social media volume naturally exploded, reflecting the manic speculation that gripped Ethereum Classic. Social media volume collapsed with price, but since June 6, the metric has flatlined and sits slightly above the levels that preceded the massive advance of April-May. The metric indicates that Ethereum's price has finally liquidated the excess social media intensity.

Ethereum Classic price has been labeled the cheap Ethereum, and the historic rally resulted from market operators leveraging the strength in Ethereum. However, it is essential to consider that, for the most part, Ethereum Classic is not involved in the exciting developments in Defi and NFTs like Ethereum. Therefore, it does not have a firm, compelling fundamental story.

Piggy-backing on ETH was brief but highly profitable, so market speculators need to maintain a clear view on Ethereum to measure the sustainability of any Ethereum Classic price move.

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