ETC/USD breaks the downtrend with a 3.5% gain

• The overwhelming drop yesterday saw ETC plunge below several key support areas.
• The ongoing recovery is supported by positive technicals.

Ethereum Classic is defying the odds once again by posting a remarkable reversal. The top three cryptocurrencies Bitcoin, Ethereum and Ripple are still forced between a rock and a hard place. Minimal recovery is seen across the board but Ethereum Classic leads the bullish park with gains more than 3.5%.

The overwhelming drop yesterday saw ETC plunge below several key support areas. Fortunately, the low formed at $5.72 (Fibonacci swing low) marked the beginning of a reversal. Glancing at the hourly chart, the price has recovered significantly above the trendline resistance.

In fact, Ethereum Classic is dancing above the 23.6% Fib level with the last drop from a high at $7.53 to a low of $5.72. While trading at $6.205 the immediate upside is limited by the 50 Simple Moving Average. The 38.2% Fib level marks a zone with a higher concentration of sellers. However, technicals are in favor of the bulls a condition that suggests that further retracement north is to be expected in the coming sessions.

ETC/USD 1-hour chart