Ethereum Classic (ETC) Price Analysis
After a prolonged downtrend, Ethereum Classic (ETC) has finally broken out of its descending triangle setup.
This breakout is a bullish sign that could lead to a significant rally in the weeks and months to come.
However, as with all things in cryptocurrencies, there is no guarantee that this will happen. Ethereum Classic is still a relatively small and volatile cryptocurrency, and there are many factors that could affect its price in the future.
Bullish Case
- ETC has broken out of a descending triangle setup, which is a bullish technical formation.
- The Relative Strength Index (RSI) is above 50, which indicates that ETC is in a strong uptrend.
- ETC has strong support at $14.70, which could prevent a major correction.
If ETC can continue to hold above $14.70, it could rally to $20.59, which is the target of the descending triangle breakout.
A move above $20.59 would open the door to a further rally to $25.00 or even $30.00.
Bearish Case
- ETC has yet to confirm the breakout of the descending triangle pattern.
- The RSI is still below 70, which indicates that ETC could be overbought.
- ETC has weak support at $14.70, which could lead to a sharp correction.
If ETC breaks below $14.70, it could correct to $10.36 or even $10.00.
A move below $10.00 would be a very bearish sign and could lead to a further decline to $5.00 or even $2.00.
Conclusion
The breakout of the descending triangle pattern is a major bullish development for Ethereum Classic.
However, it is important to remember that anything can happen in the cryptocurrency market.
ETC could just as easily rally as correct, so it is important to manage your risk and trade accordingly.
Disclaimer: The views and opinions expressed in this article are solely those of the authors and do not reflect the official policy or position of FXStreet or its advertisers. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be held liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
Copyright: FXStreet