Ethereum Classic price on the cusp of a 20% advance, as ETC awaits the trigger – FXStreet

  • Ethereum Classic price illustrating a symmetrical triangle continuation pattern.
  • Declining 200 six-hour simple moving average (SMA) putting pressure on the digital asset.
  • A decline below $52.82 leaves ETC vulnerable to a test of the 2018 high.

Ethereum Classic price is shaping a symmetrical triangle continuation pattern suggesting that price will resolve to the upside and continue the rally originating on June 22. The pattern appears close to the conclusion as ETC is nearing the triangle’s apex, encouraging investors to ready their portfolio decisions.

Ethereum Classic price contraction leads to price expansion

Ethereum Classic price did complete a 92% gain from the June 22 low, overcoming the resistance of the descending May trend line and the previously impossible 2018 high at $46.98. It was a bullish departure from the marginal strength experienced by other altcoins.

ETC price consolidation after the gains from the June 29 high has been mild in magnitude. Still, it effectively released the overbought condition highlighted by the intra-day Relative Strength Indexes (RSI) and turned the 50 six-hour SMA into support after weeks of notable resistance.

The result of the minor corrective process has been the formation of a symmetrical triangle pattern with Ethereum Classic price getting close to the apex of the formation, implying that ETC should activate at any time or risk losing the advantage of the constructive consolidation. As is always the case, price contraction leads to price expansion.

The measured move of the symmetrical triangle is 19%, projecting a target price of $67.09, thereby successfully positioning Ethereum Classic price above the critical 200 six-hour SMA at $57.94. Indeed, the rally potential is minor compared to the initial bounce from the June 22 low, but it strengthens the position of Ethereum Classic price versus the 2018 high of $46.98.

The points of resistance for the rally include the 200 six-hour SMA at $57.94 and the June 29 high of $62.45. 

Currently, Ethereum Classic price is slipping out of the symmetrical triangle to the downside, but it can be classified as inconclusive. Moreover, ETC has not declined below the crucial level of support at $52.82. Nevertheless, it requires attention as the trading day progresses.

ETC/USD 6-hour chart

ETC/USD 6-hour chart

As mentioned, $52.82 is the line of support for the symmetrical triangle, but if it fails Ethereum Classic price should capture a bid at the confluence of the July 2 low of $50.67 with the 50 six-hour SMA at $50.63.

Any ETC weakness below those levels would assure a test of the 2018 high, representing a 13% decline from the current price.

Ethereum Classic price got a headstart on most of the cryptocurrency market with a 90% gain and recovering key resistance levels. If ETC emerges from the continuation pattern, it will only solidify the relative strength position of the digital token and raise its profile among investors.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

You May Also Like

About the Author: Kate