- Ethereum Classic price is bouncing off the $27.48 to $28.19 support area, hinting at a potential trend reversal.
- ETC could rally another 10% before facing another significant hurdle, extending from $31.17 to $32.08.
- A daily candlestick close below $26.50 will create a lower low and invalidate the bullish outlook.
Ethereum Classic price has started to turn around after weeks of downtrend and sell-off, but there is still more room to cover. Therefore, investors need to be careful as this ongoing spurt in bullish momentum could take a U-turn quickly.
Ethereum Classic price needs more confirmation
Ethereum Classic price saw an explosive surge in buying pressure that propelled it by 243% in roughly a month. This massive bull rally was a byproduct of Ethereum’s upgrade via the Merge update. After an exponential move like this, ETC started to feel the holders’ selling pressure, which eventually led to a 41% correction that formed a swing low at $26.50.
Since this local bottom, Ethereum Classic price has flipped the immediate hurdle, extending from $27.48 to $28.19 into a support area. As ETC hovers above this barrier, investors need to be careful of the midpoint at $29.61, which will be a source of major headwinds for buyers.
If Ethereum Classic price overcomes this hurdle, it could attempt a 13% rally to fill the imbalance that extends up to $33.52. From the current position, this run-up would constitute a 17% gain and is likely where the upside is capped.
ETC/USDT 1-day chart
While things are looking up for Ethereum Classic price after the recent surge in bullish momentum, investors need to be careful of the hurdles that await. A sudden sell-off in Bitcoin price could translate to a similar outlook for ETC.
If Ethereum Classic price produces a lower low below $26.50, it will indicate a continuation of the bearish outlook and also invalidate the bullish reversal thesis. Such a development could see ETC retest the 62% Fibonacci retracement level at $25.70.
Note:
The video attached below talks about Bitcoin price and its potential outlook, however, this is still relevant as it is likely to influence Ethereum Classic price.
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