In recent market movements, Ethereum (ETH) has shown a decisive shift in momentum, breaking below key support levels and dragging related assets like Ethereum Classic (ETC) into a broader downward trend. According to data from Huobi, as of 12:00 PM Beijing time on July 26, Ethereum was trading at 1,366.89 CNY, down 3.91% from its opening price of 1,422.54 CNY. The highest point during the session reached 1,444.90 CNY, while the intraday low dipped to 1,340.10 CNY — a significant breakdown through the previously strong support zone around 1,450 CNY.
Ethereum Price Action: Breakdown With Momentum
Looking at the hourly chart for Ethereum on Huobi, the cryptocurrency had been consolidating in a tight range for nearly a week before making a directional move around 5:00 PM the previous day. The breakout was bearish — accompanied by increased trading volume — confirming market conviction behind the sell-off.
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This volume-backed decline pushed ETH below the psychologically important 1,450 CNY level, a zone that had acted as both support and resistance in recent sessions. After reaching a new short-term low near 1,340 CNY, the price saw a sharp rebound that precisely retested the broken support (now resistance) at 1,450 CNY. However, the rally failed to sustain, and prices resumed their downward trajectory.
From a technical standpoint, this behavior reflects classic market structure: a support level breaks, turns into resistance, and any retest fails — reinforcing the bearish bias. What makes this move more concerning for bulls is that both the initial drop and subsequent bounce were volume-supported, indicating active participation from both buyers and sellers. This suggests heightened volatility and ongoing conflict between market participants.
Despite the intraday swings, the daily chart still reflects a broader adjustment phase. There is no clear reversal pattern yet, and the dominant trend remains sideways-to-downward within a consolidating range. Traders should watch for continued volatility and potential extensions toward lower support zones if bearish momentum strengthens.
Ethereum Classic Mirrors ETH Move — But With Weaker Dynamics
At the same time, Ethereum Classic (ETC), often considered a correlated asset due to its shared history with Ethereum, has followed suit — but with notably weaker price dynamics.
As of the same reporting time, ETC was trading at 98.64 CNY on Huobi, down 3.37% from its opening price of 102.12 CNY. The session high reached 102.99 CNY, while the low touched 97.80 CNY. While the percentage drop is slightly less than that of ETH, the underlying market structure tells a different story.
Historically, ETC has shown strong correlation with ETH movements, typically moving in the same direction during major market events. The current downtrend is no exception — ETC also broke below its recent support near 104 CNY in tandem with ETH’s decline.
However, what stands out is the lack of buying pressure during rebounds. The hourly chart reveals a pattern of “down on volume, up on low volume” — a classic sign of weak demand. While Ethereum saw meaningful volume during its counter-trend bounce, Ethereum Classic’s recovery attempts have been muted and poorly supported by trading activity.
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This divergence suggests that investor interest in ETC remains limited compared to its larger counterpart. Despite the correlation in price direction, ETC lacks the same level of market depth or speculative enthusiasm. On the daily timeframe, overall trading volume remains extremely low — an indication that ETC has not yet developed an independent bullish narrative and continues to be driven primarily by broader ETH-related sentiment.
Market Implications and Investor Outlook
The synchronized move between ETH and ETC highlights the interconnected nature of digital assets, especially those with shared technological or historical roots. When a major player like Ethereum undergoes a structural breakdown, ripple effects are often seen across smaller, correlated tokens.
For traders, this environment calls for caution. A breakdown on high volume followed by a failed retest increases the likelihood of further downside. Key levels to monitor include:
- Ethereum: Immediate support now lies around 1,300–1,320 CNY. A close below this zone could open the door to 1,250 CNY or lower.
- Ethereum Classic: With resistance at 104 CNY now confirmed broken, next support comes in around 95 CNY. A breakdown here may lead to deeper selling if confidence erodes further.
On-chain metrics and sentiment indicators also suggest growing uncertainty. Funding rates have cooled across major exchanges, and open interest in ETH perpetual futures has declined slightly — signs that leveraged positions are being reduced amid heightened risk.
Frequently Asked Questions (FAQ)
Q: Why did Ethereum break down below 1,450 CNY?
A: After a prolonged period of consolidation, selling pressure intensified with increasing volume, indicating strong bearish conviction. The breakdown was likely triggered by broader market sentiment shifts and profit-taking after prior gains.
Q: Is Ethereum Classic likely to decouple from Ethereum’s price action?
A: Historically, ETC has maintained strong correlation with ETH due to shared origins and investor base. While minor divergences occur, full decoupling is rare without fundamental changes in supply, demand, or ecosystem development.
Q: What does “down on volume, up on no volume” mean?
A: This phrase describes a bearish pattern where price drops are confirmed by high trading volume (indicating strong seller control), but rallies occur with little volume (suggesting lack of buyer conviction), increasing odds of further decline.
Q: How reliable are Huobi price data for global crypto trends?
A: Huobi provides real-time data reflective of Asian market activity. However, global prices should be cross-checked across multiple exchanges due to regional differences in liquidity and trading pairs.
Q: Can Ethereum recover quickly from this drop?
A: Recovery depends on renewed buying interest and macro-level crypto market conditions. Until ETH regains 1,450 CNY with volume, the short-term bias remains cautious or bearish.
Q: Should I be worried about low volume in Ethereum Classic?
A: Yes — low volume during rebounds signals weak demand. It increases vulnerability to sharp moves and reduces liquidity for traders, making ETC riskier than higher-volume assets.
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Final Thoughts
While Ethereum’s recent breakdown shows signs of technical weakness, it's part of a larger adjustment phase rather than necessarily signaling a long-term reversal. For Ethereum Classic, the situation is more concerning due to lackluster volume and fading investor engagement.
Traders should remain vigilant, use risk management tools like stop-loss orders, and avoid chasing moves without confirmation. As always in crypto markets, volatility creates opportunity — but only for those prepared to act with discipline and clarity.
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