- Ethereum Classic price is breaking out from a falling wedge pattern.
- ETC is likely to experience a 20% upswing to $55.74.
- A breakdown of the $44.07 support floor will invalidate the bullish thesis.
Ethereum Classic price is on the verge of a breakout and could kick-start a massive uptrend. However, there is a stiff resistance level that infests the bullish path ETC will take. Therefore, investors need to keep an eye out for a retracement around this barrier.
Ethereum Classic price ready to launch
Ethereum Classic price set up more than three distinctive lower highs and four lower lows since September 16. Connecting trend lines with these swing points shows the formation of a falling wedge.
This technical formation has a bullish breakout and forecasts a 20% upswing, determined by measuring the distance between the first swing high and low. Adding this measure to the breakout point at $46.26 reveals the theoretical target of $55.74.
However, this run-up will face a significant hurdle at $51.33, the September 24 swing high. Therefore, the buyers must overcome this barrier to have any chances of reaching its intended target.
Clearing this supply area will open the path to retest $55.74. In some cases, ETC might climb higher and retest the September 16 swing high at $60.08.
ETC/USDT 6-hour chart
On the other hand, if the Ethereum Classic price fails to close above $46.26, it will suggest a lack of bullish momentum. Such a development could lead to a retracement to the support level at $44.07 and might hinder the uptrend.
If ETC produces a decisive close below this platform, it will create a lower low and invalidate the bullish thesis. If the selling pressure continues to pour in, market participants can expect a retest of the subsequent support barrier at $41.43.
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