Ethereum Classic has yet to make a solid move from the recent flurry of promising announcements that the team has made in the past month. The new Radex Classic decentralized exchange on the ETC network, new Metamask support, Saturn Wallet and the Coinbase listing have done little so far in rounding up new investors for a push back.
As the price continues to sink under increasing bearish pressure, will we see a bullish breakout emerge from the consolidation, or will the asset break below its base support and start to tumble further?
Looking at the ETC/USD chart over 4hr candles we can see that the candles are still tracking well inside the descending triangle, with bearish sentiment continuing to weigh heavily on bullish traders for this particular asset.
The price action has now reached the consolidation area but has been struggling to break free of the 0.786 fibonacci resistance inside this pattern. Over the past month this resisting level has forced ETC sideways and will need to be overcome if the asset is to continue upward.
Nevertheless, there are strong bullish signals that are foreshadowing a breakout from this overall trend, including the triple bottom highlighted on the chart and a ‘golden crossover’ between the 50 EMA (blue) and the 200 EMA (red).
The RSI is also showing an increase in buying momentum for the asset, with the indicator line climbing into the upper quartile of the channel.
Ichimoku indicator is also showing a bullish T/K crossing with candles close to passing through the kumo cloud. We need to see candles continue to break through the cloud to confirm this reversal.
While this might seem like a ‘when lambo?’ moment, it’s worth noting that this chart does bear a striking resemblance to the LTC/USD pattern that broke bearish over 16 days ago.
Comparing the two charts below we can see that LTC was also held in a descending triangle, with a triple bottom and almost a 50/200 EMA golden crossover.
LTC/USD
ETC/USD
As we can see though, the asset lost significant momentum once it began to fall back towards the base support and has now found its way to the predicted support drawn way down at $73.
Right now ETC is in a critical position, where it too could also suffer the same fate if it fails to break beyond the 0.786 fib level.
If support can amass to break through the fib resistance however, then perhaps further support from the asset’s South Korean fanbase can whip up a nice frenzy to drive it over the breakout zone and into a new bullish phase.
Ethereum Classic (ETC) Price Targets
All ROIs for this asset will be set from the 0.786 fibonacci level, at $15.746.
Bullish target: Box 1 is our bullish target for Ethereum Classic, if and when support arrives off the back of these announcements. This particular box sits inside the 0.618 fib level at $17.886 and the 0.382 fib level above at $20.892. It’s likely we’ll see ETC meet bearish opposition once it returns to the $20 level.
Overall a retracement to the 0.382 level will deliver an ROI of 32.68%
Bearish target: Box 2 is our bearish zone for ETC, if the 0.786 fib level succeeds again in holding the price down. Box 2 sits below the base support, between $10 and $12, with a softer support area inside at $11.40.
We could expect a strong rebounding rally to take ETC back up to the support from here, but we’ll have to wait and see if that transpires.
Overall a fall to the lowest level here will deliver a loss of -36.49%.
This article appeared first on Cryptovest
