• Ethereum Classic price charts an inverse head-and-shoulders pattern with the Anchored VWAP providing support.
  • Declining 50-day simple moving average (SMA) is becoming an obstacle for the right shoulder.
  • ETC closed last week with a 33% gain, getting some inspiration from the 17% gain in ETH.

Ethereum Classic price reasserted some leadership off the June 22 low with a 92% gain. The limited pullback following the impressive rally suggests that ETC wants higher prices moving forward, as it completes an inverse head-and-shoulders pattern. Only the 50-day SMA is an obstacle for the bullish narrative.

Ethereum Classic price shows no signs of selling pressure

Ethereum Classic price closed 2Q with a 300% gain, a remarkable performance on an absolute and relative basis. In contrast, Ethereum returned almost 20%, while Bitcoin lost 40% and Ripple gained 24%. Dogecoin was also a standout with a 375% gain.

The leadership highlighted by the 2Q performance has positioned Ethereum Classic price to continue the gains in the 3Q as ETC is forming the right shoulder of an inverse head-and-shoulders pattern on the daily chart. The right shoulder has mirrored the left shoulder with a mild price range while being instructed by the Anchored VWAP from March 29, which is currently at $55.39. Additionally, both shoulders have formed above the important 2018 high of $46.98.

The measured move of the inverse head-and-shoulders pattern is 90%, projecting an ETC price target of $119.73 from the current position of the neckline. A rally of that dimension would overcome the resistance defined by the 38.2%, 50% and 61.8% Fibonacci retracement levels of the May-June correction but fall short of the 78.6% level at $131.74. Moreover, it would put Ethereum Classic price just 30% below the all-time high of $158.76. 

Standing in front of the bullish ETC narrative is the declining 50-day SMA at $59.29. The tactically important moving average could delay the breakout above the neckline in the short term, especially in a weaker cryptocurrency market.

To date, Ethereum Classic price retracement of the sharp rebound from the June 22 low has been mild and far less than anticipated. Despite the relative strength, investors still need to be prepared for a deeper pullback, even to the 2018 high at $46.98, until ETC triggers the inverse head-and-shoulders pattern.

ETC/USD daily chart

ETC/USD daily chart

If ETC registers a daily close below the 2018 high, it would be a setback for the bullish narrative and raise the probabilities that the rally was a one-off event rather than the beginning of a new, sustainable uptrend for the altcoin.

As the cryptocurrency market attempts to rebound off corrective lows, it is imperative to seek out relative strength in individual cryptocurrencies, discern their patterns and plot the timely entry point or points. 

Ethereum Classic price has shown relative strength, charted a clear pattern and provided a timely entry price, thus creating one of the better opportunities for market operators.  

Here, FXStreet's analysts evaluate where ETC could be heading next with a brief technical and on-chain analysis on Ethereum Classic price.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

The LUNA hard fork is set to occur on May 28, followed by the subsequent airdrop of LUNA 2.0 tokens to eligible holders. Ahead of the real LUNA 2.0 airdrop, some scammers have tried to lure LUNA and UST holders to send their assets in lieu of receiving the new tokens. 

More Terra News

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

More Bitcoin News

This Web3 move by Crypto.com could be a good bet for patient investors

This Web3 move by Crypto.com could be a good bet for patient investors

Crypto.com price stabilization on a high time frame chart indicates that a bottom formation could be taking place. This pattern combined with a bullish signal from a momentum indicator adds credence to the possibility of a reversal and a recovery rally for CRO.

More Crypto.com News

Why Elon Musk’s tweet failed to move Dogecoin price

Why Elon Musk’s tweet failed to move Dogecoin price

Dogecoin price slipped up as Bitcoin price triggered a sudden crash on May 26. This downswing, while serving as a great opportunity to accumulate DOGE, failed to recover alongside BTC.

More Dogecoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis