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  • Ethereum Classic price is currently sitting on a crucial support level at $42.8.
  • A bullish rally could stretch ETC price to $60.
  • A break below the $38 support level could see ETC retest the $32 low.

Ethereum Classic price declined on July 05 bouncing off the lower boundary of a descending parallel channel. Since then ETC has been trading below the 20-day Simple Moving Average which remains a key barrier to the asset’s ascent. This suggests a potential continuation of the bearish leg. But can ETC bulls overturn the bears grip?

The Fading Ethereum Classic Price Bearish Leg

Ethereum classic price dropped 2.3% over the last 24 hours according to Coinmarketcap to find support at $42.8. Although ETC continues to decline, it appears to be sitting on a strong support at $38.2.

Considering that the Ethereum Classic price successfully bounced off this crucial support twice in June, it is likely the asset will re-test this support. If overhead pressure manages to push the ETC price below the current support at $42.8, this will extend the lower boundary of the descending parallel channel to coincide with the two-time support at $38.2. It will be difficult for bears to push past this point, preparing Ethereum classic for a rise. Therefore, traders should expect ETC price to surge over the next few days.

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The resistance level at $48 defined by the 20-day SMA and the upper boundary of the descending channel will be the first hurdle the Ethereum Classic bulls will have to overcome after a 10% surge.

If bullish pressure is strong enough to slice through this powerful resistance, Ethereum Classic price could make a 20% ascend to retest $51.5 which also currently defined by the 100-day SMA and, even higher $56. Therefore, a 39% rally from the current price at $43.5 to $60 appears possible.

Ethereum Classic Price (ETC/USD) 4-Hour Chart

Ethereum Classic Four Hour Chart
Ethereum Classic Four Hour Chart

 

The bullish outlook could be confirmed by the Moving Average Convergence Divergence (MACD) indicator in the near term. This will happen when the -day exponential moving average (EMA) crosses above the 26-day EMA. Moreover, as this trend momentum indicator gains ground toward the zero line, gains are expected to gain traction and validate the uptrend.

Looking Over The Fence

While the bullish outlook looks plausible, investors should be warned that the uptrend may not be sustained. If Ethereum Classic price fails to hold the support at $38, it will indicate that the bullish pressure is not enough and a breakdown towards the June 22 low at $32 may ensue marking a 26% drop.

The Relative Strength Index (RSI) accentuates this bearish outlook as it continues to move downwards towards the oversold region.

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