Ethereum Classic (ETC) is trading inside a bullish long and short term pattern. Nevertheless, the technical indicators do not show a bullish picture.
ETC has been declining since reaching an all-time high of $179 in May 2021. Since that month, it has been trading inside a descending wedge, which is considered a bullish reversal pattern. Hence, a final breakout from the wedge would be expected.
On August 13, the price attempted to break above the wedge resistance line, which coincided with the $42.50 horizontal resistance area at the time. While the attempt was unsuccessful, the resistance weakened further as it was the fourth attempt to break through.
Moreover, the weekly RSI has already broken above its resistance line and moved above 50 in the process. This is considered a sign of a bullish trend.
Consequently, the weekly time frame readings suggest that an eventual breakout is expected from the wedge and the $42.50 horizontal resistance area.
daily movement
cryptocurrency trader @javonnnm Tweeted a chart from ETC, stating that the price is likely to reach $52.
However, the daily chart does not provide definite clues about the direction of the trend. The chart further reiterates the importance of the $42.50 resistance area though near $45 on the daily time frame. Since October 2019 the area has acted as both resistance as well as intermittent support.
The daily RSI is bearish as it broke an ascending support line and is now below 50. Therefore, the daily time frame does not give a clear indication that a breakout is to be expected.
Finally, the six-hour chart shows another descending wedge, which has been in place since the beginning of August. Although the wedge is considered a bullish pattern, the six-hour RSI is yet to break out of its descending resistance line. Moreover, it is still below 50.
Therefore, while the price action is bullish, the technical indicator readings are not.
Therefore, the direction of the trend is not entirely clear. ETC breakout or breakout from the short-term wedge can determine the direction of the future trend.
ETC wave count analysis
The wave count shows that ETC has completed a five-wave upward movement (white) that ended with a July 29 high of $45.36. Since then, it has been declining inside what is likely to be an ABC corrective structure. Since waves A:C have a 1:1 ratio, it is possible that the correction is complete.
Therefore, the wave count is more in alignment with the bullish price count than the relatively bearish technical indicator reading. A decisive decline below $30.35 (red line) would invalidate this particular wave count, while a breakout from the wedge shown earlier would confirm it.
be for[in]Latest Bitcoin (BTC) Analysis of Crypto, Click Here