Ethereum Classic (ETC/USD) forms a bullish pin bar at support. What’s the outlook now?

Ethereum Classic (ETC/USD) buyers have defended the $23 support after the price temporarily broke below it. The price is stabilising slightly above the support after recovering by more than 8% in the past 24 hours. But can the cryptocurrency sustain a further recovery?

Macro developments and Ethereum Classic’s own fundamentals are likely to be key price influencers. For the former, there is a lot of uncertainty regarding the Fed’s action on account of increasing inflation. The inflation surge was responsible for ETC’s decline on Thursday. The consumer price index is expected to remain a thorn, at least in the foreseeable future. There are expectations that the Federal Reserve will act fast to tame the rising inflation.

On Ethereum Classic’s own fundamentals, there are hardly any positive developments. The previous gains on ETC were centred around Ethereum’s shift to a Proof-of-State consensus mechanism. It was expected that the Merge would attract Proof-of-Work miners to Ethereum Classic. It did, as Ethereum Classic saw a rise in hash rate post-Merge. Nonetheless, the hype around the shift has since subsided. ETC has maintained a downtrend, although the potential for recovery remains. 

Ethereum Classic battles the $23 support

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in.

It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest.

eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy ETC with eToro today

Disclaimer

OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in.

OKX takes customer security very seriously, they store almost all of their clients’ funds in cold storage, and the exchange is yet to be hacked.

On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.

Buy ETC with OKX today

Disclaimer

Source – TradingView

Technically, it is a mixed scenario for Ethereum Classic. The cryptocurrency now sits at $23 support. A good note to the buyers is that a bullish pin bar formed at the support, reigniting hopes of price recovery.

Conversely, ETC sellers would be delighted with the current weak momentum experienced at the support. The MACD indicator recently initiated a bearish crossover and remains in the bear zone. The moving averages above the current price reinforce a bearish view.

Should you buy ETC?

While we remain optimistic about the ETC comeback after the bullish pin bar, the price may still crash below $23. All the technical indicators show a bearish and/or weak momentum. Consider buying after further bullish price action pointers.