• Ethereum Classic price closing in on the fourth consecutive positive week for the first time since April 2020 (also a bottom).
  • ETC six-hour chart is flashing a bearish momentum divergence with the Relative Strength Index (RSI), not confirming price highs.
  • The June 30 high of $62.45 proving to be a rally killer, keeping the digital token from testing the 38.2% Fibonacci retracement.

Ethereum Classic price closed July with an inside month that triggered on August 7 with a 13.77% gain. The price compression generated by the inside month should propel ETC to higher prices, but in the short term, the digital asset needs to sever the resistance invoked by the June 30 high of $62.45 on a daily closing basis.

Ethereum Classic price potential yet to be fully realized

Over the last 24 days, Ethereum Classic price shows a gain of 60.51% on a closing basis, a notable deviation from the 80%+ gain in Ethereum, but in line with most of the altcoins as of today. Moreover, ETC has logged a 23.71% return in August, making it the best August going back to 2016.

Over the last five days, Ethereum Classic price has been frustrated by the June 30 high of $62.45 on a daily closing basis and a slightly overbought reading on the daily chart. Nevertheless, as long as ETC remains above the descending parallel channel’s upper line, it will pursue higher prices over the long term, with the 38.2% retracement at $80.75 being the first obstacle after the June 30 high.

ETC/USD daily chart

ETC/USD daily chart

With the June 30 high of $62.45 already challenging the bullish narrative, the RSI on the six-hour chart shows a bearish momentum divergence at yesterday’s Ethereum Classic price high. The combination of the resistance with the divergence may inspire a mild pullback in ETC, but the downside is well-protected by the 50-day simple moving average (SMA) at $50.09 and the 2018 high of $46.98. Thus, unless there is a daily close below $46.98, Ethereum Classic price will just be carving out a more complex price structure.

ETC/USD 6-hour chart

ETC/USD 6-hour chart

Ethereum Classic price began the rally on July 21 in a constructive position concerning its price structure. ETC was significantly above the 50-week and 200-day SMAs and was not cornered by the resistance attached to the May lows or subdued by a bearish Death Cross pattern on the daily chart. The result is a rally of over 60% at the current price.

Despite the current struggles with the June 30 high of $62.45, Ethereum Classic price remains in an advantageous position. It has the technical credentials to stimulate the ETC rally to the 38.2% retracement at $80.75, representing a 27% return from the current price. It is just a question of how long the consolidation at the June 30 high lasts and if the bearish momentum divergence on the six-hour chart converts to any weakness.

Here, FXStreet's analysts evaluate where ETC could be heading next as it looks primed to break out.

 

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

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto bulls on winning streak pushing for more

Bitcoin price jumped this week after a shift in sentiment on Thursday when global equities went back in the green and investors favored riskier assets like cryptocurrencies. 

More Bitcoin News

Binance support for Polkadot parachain auctions could send DOT to new all-time high

At the Sub0 Conference representatives of Parity Technologies, DOT founders Gavin Wood and Robert Habermeier, confirmed that Polkadot is now ready to implement parachains, auctions and crowd loans on its blockchain network. 

More Polkadot News

XRP price awaits for volume to skyrocket to $2

A brief technical and on-chain analysis on XRP price. Here, FXStreet's analysts evaluate how Ripple bulls take control.

More Ripple News

Shiba Inu whales buy the dip after SHIB loses $600 million in market cap

Shiba Inu concluded a massive rally, and SHIB price plunged on October 14. Proponents were awaiting a Dogecoin flippening, however, SHIB dropped to 14th rank by market capitalization soon after. 

More Shiba Inu News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP