- Ethereum Classic price has been locked in a bearish trend, following an explosive surge in early May.
- ETC is building a bull flag pattern with a resistance trend line at $100.
- Retesting of the all-time high level could potentially push ETC to new record highs.
Ethereum Classic price surged by over 400% during the first week of May, creating a new all-time high at nearly $180. ETC has retraced since then by over 50% and is currently trading at $89. Now, this cryptocurrency seems prime to resume its uptrend as it tries to break out from a continuation pattern.
Ethereum Classic price consolidates before next major push
Ethereum Classic price is forming lower highs and lower lows on the 12-chart. Joining these pivot points using a trendline creates a bull flag, where the 413% upswing that preceded this act seems to have formed the flagpole. Such a bullish pattern indicates that ETC uptrend is expected to continue soon.
A breakout above the flag’s resistance trend line at $100 could increase the odds for an 80% upswing to retest the recent all-time high of nearly $180. This conservative target is measured by adding the length of the flag pole to the breakout point.
If Ethereum Classic price manages to break through its all-time high and flips this level into support, ETC could be driven towards $500, representing a 413% rally as calculated by the flagpole’s height.
ETC/USDT 12-hour chart
Ethereum Classic price action must remain above the critical support zone at $74.81 to add credence to the optimistic outlook. Otherwise, the bulls would lose control and ETC could break below the flag’s lower trendline at $60.
The downswing might result in further selling, pushing Ethereum Classic price toward $50. This price hurdle acted as stiff resistance from mid-April until May 3, suggesting that it may serve as strong support in the event of a correction.
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.