- Ethereum Classic price spells out a cup and handle pattern with a target above $120.
- Ethereum Classic robust support is provided by the 50, 100 and 200 SMAs.
- The $70 psychological level appears to be a significant hurdle for ETC’s rally continuation.
Ethereum Classic Price is exchanging hands 80% higher than the June 20 low at around $37.68. Recovery has been slow but steady, probably due to bear’s congestion around the 50 and 100 Simple Moving Averages (SMAs), the $52.30 resistance level and the 200 SMA. At press time, ETC was trading at $68.02 on most crypto trading platforms while battling overhead pressure from the $70 psychological level. Note that a 12-hour candlestick closure above this level will see the Ethereum Classic price breakout upwards as bulls eye highs above the May 26 high at $83.93, 22% above the current price.
Bullish cup-and-handle pattern sets Ethereum Classic Price for Higher Highs
ETC has rallied approximately 11% over the last 24 hours and appears to be forming a cup and handle chart pattern on the 12-hour chart, indicating a bullish outlook aiming for higher prices.
On Thursday, Ethereum classic tested the May 28 high around $78.96. This implies that the bulls are determined to regain the multi-month ETC price losses triggered in May. This bullish bias is currently secured by the support base at $57.70 embraced by the 50 and 200 SMAs forming the right side of a cup and handle chart pattern.
Note that the measured move of the cup and handle pattern for the Ethereum Classic price is 58% suggesting a price target of $123. The target falls short of the May 6 all-time-high above $75.
Ethereum Classic needs to breakout above the May 28 high of $78.96 and the handle high of $76.60 to overcome the selling pressure and take ETH out of the handle. If this happens, the odds of an upward swing towards $1235 will increase. This upswing will however be met by resistance by from the May 26 high at $83.93 and the $92.45 resistance levels.
ETC/USD 12-Hour Chart
This bullish narrative is accentuated by the upward movement of the Relative Strength Index (RSI) towards the overbought region, showing that buyers are in control of the cryptocurrency.
Also it is important to note that the MACD has just sent a bullish signal on the four-hour chart when the MACD line (blue) crossed above the signal line indicating that the bulls are currently in control of BTC.
Furthermore, ETC is about to turn massively bullish after in near-term. This will happen when the 50 SMA moves above the 200 SMA. If this happens ETC could surge massively towards areas beyond $123.
Can ETC’s Bullish Narrative Be Invalidated?
Ethereum Classic’s bullish thesis could be invalidated of Ethereum Classic slides below the $60 psychological level to close the day below the 50 and 200 SMAs at $57.70. If this happens, the odds for a deeper correction would increase that would see ETC fall to the 100-SMA at $53.10 or the July 20 low around $37.69.
How To Buy ETC
You can buy it Ethereum Classic on eToro and other big crypto exchanges such as Binance, Coinbase, Bittrex and Kraken.
Looking to buy or trade Ethereum Classic now? Invest at eToro!
Capital at risk
Share
Nancy Lubale
