Ethereum Classic [ETC] crashes past $27.3, but traders might need to be cautious

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Ethereum Classic [ETC] has been in a downtrend since early September. There have been significant short-term bounces in between, many of which measured close to 10%. However, the larger timeframe structure remained bearish, despite the rise in the hash rate for the network. It remained so for Ethereum [ETH] as we head into a new week.

Here’s AMBCrypto’s Price Prediction for Ethereum Classic [ETC] in 2022

Furthermore, 10 October could see ETC establish a range for the week, based on the day’s high and low. In the meantime, Bitcoin [BTC] saw the Bollinger Bands (BB) pinch on the one-hour price charts to show lowered volatility in the past two days.

Source: ETC/USDT on TradingView

The lowered volatility around Bitcoin could be a sign that a strong move was imminent. The sentiment in traditional markets on 10 October would surely influence Bitcoin as well. Hence, traders should be wary of heightened volatility around the corner.

For ETC, the price action showed another bearish move could be in sight. The short-term support at $27.3 had held for a week, but the previous day of trading saw this level decisively broken. A retest of this zone would see sellers jump into the fray with abandon.

The Relative Strength Index (RSI) was well below neutral 50 on the two-hour chart to show strong downward momentum. The Stochastic RSI was climbing toward the 80 mark and a bearish crossover can be used to add confluence to a shorting opportunity. Invalidation of this bearish idea would be a session close above $27.62.

Source: Santiment

In mid-September, the price crashed from $38.5 to $28.3 within the span of a