- Ethereum Classic price shows a strong recovery after retracing to the 62% retracement level at $18.24.
- In total, a 20% upswing is on the cards for ETC if it can stay above the $19 barrier.
- A daily candlestick close below $18.55 will invalidate the bullish thesis.
Ethereum Classic price reveals a tight consolidation between two crucial barriers. Sustenance of the bullish momentum could suggest an upswing for ETC is on its way.
Ethereum Classic price needs to hold its line
Ethereum Classic price rallied 21% between November 21 and 23 and set up a local top at $20.85. Soon thereafter, this high was swept for buy-stop liquidity, which resulted in a 12% downswing that knocked ETC down to the 62% retracement level at $18.55.
A resurgence of buying pressure at the said level caused Ethereum Classic price to trigger a 12% upswing. Regardless, ETC is stuck producing lower highs since November 23. However, the Relative Strength Index (RSI) on the four-hour chart has slid down to 50, indicating a potential reset of the bullish momentum. If true, it should kick-start an upswing for the altcoin.
If there is enough resurgence of buying pressure, Ethereum Classic price will shatter through the declining trend line and make its way to $23.01. If this move occurs after a sweep of the sell-stop liquidity below $19.34, it would constitute approximately a 20% gain.
ETC/USDT 1-hour chart
While this outlook is bullish, a failure to recover after sweeping the $19.34 level would indicate weakness in the Ethereum Classic price action. If ETC produces a lower low below $18.55, it will skew the odds favoring bears and, potentially, kick-start a correction to retest the range low at $17.15.
This video details how Bitcoin price moves could affect Ethereum Classic price
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