Time to lock in the gains as ETC price retreats

• Ethereum Classic price tops out at $27.00, as declines loom beneath a rising channel.
• The MACD is ready to validate ETC’s pullback with a sell signal.
• Short-term support at the 200-day SMA could pave the way for ETC to resume uptrend.

Ethereum Classic price is turning red on Sunday after completing a breakout move to $27.00 as analyzed by FXStreet earlier this week. This rebound respected the confines of a rising parallel channel, but profit booking seems to be curtailing the extension of ETC’s bullish leg above $30.00.

Ethereum Classic price bows to immense resistance

The move to $27.00 largely depended on support at $22.20. Moreover, a four-hour candlestick close above the hurdle turned support area at $24.00 validated the bullish outlook in Ethereum Classic price.

As mentioned before, ETC moved within the boundaries of a rising parallel channel to $27.00. Despite this impressive move, Ethereum Classic price has now flipped bearish – thanks to investors booking early profits.

ETCUSD four-hour chart

If support at $26.00 bows to the building overhead pressure, short-term sell orders will immediately turn profitable. Besides, the Moving Average Convergence Divergence (MACD) will likely confirm a sell signal before the new week.

Traders must be careful when planning their next move if they want to avoid sudden bullish pullbacks. Sell orders can only be triggered after the 12-day Exponential Moving Average (EMA) (in blue) has crossed below the 26-day EMA.

It is necessary to wait for Ethereum Classic price to make a clean break under the 200-day EMA (in purple) before flipping strongly bearish. According to the On-Balance-Volume (OBV) indicator, most of the volume currently being traded is negative.

In other words, traders seem determined to sell ETC for short-term profit targets at the 200-day EMA, the 50 EMA (in red) and support mentioned at $24.00. If push comes to shove, Ethereum Classic will stretch the leg to $22.20 before a recovery comes into play.

On the other hand, a bullish outcome in Ethereum Classic price cannot be completely ruled out, especially with the token holding above the three moving averages – the 50-day EMA, the 100-day EMA (in blue) and the 200-day EMA.

A four-hour candlestick close above its weekly peak at $27.00 could add credence to Ethereum Classic’s bullish narrative with targets at $30.00 and $34.00, respectively.