Ethereum Classic price to restore bullish forecasts, as ETC trades above $47

Ethereum Classic price shows a gain of over 17% for the week but still carries a loss of 14.7% for the month. If the current breakout above the 2018 high of $46.98 sticks, ETC faces only the 50-day SMA on a path to the upper line of the descending parallel channel. For now, the outlook remains neutral until Ethereum Classic price can close above $46.98.

Ethereum Classic price may be starting its engines, but only time will tell

Today, Ethereum Classic price is attempting to knock out two resistance levels, the 2018 high at $46.98 and the 50-day SMA at $50.10, but the effort is fading as today progresses. The ETC move is supported by above-average volume, unlike the previous three days of the new rally.   

The magnitude of the new ETC rally originating on July 21 is 23%, putting it well below the four-day burst in late June of 44% and the 43% gain at the end of May, thereby questioning the impulsiveness of the current rebound and Ethereum Classic price sustainability.

A successful close above the 2018 high and 50-day SMA today would release Ethereum Classic price to test the upper line of the descending parallel channel at $56.30, followed by the June 30 high of $62.45. There is no further resistance until the grouping of the 38.20% Fibonacci retracement of the May-June correction at $80.75 and the May 26 high of $84.09, presenting an intriguing 68% gain for ETC investors.

ETC/USD daily chart

If Ethereum Classic price fails to hold $46.98 today, it invites a retracement of the rally to the midline of the descending parallel channel at $38.19, the beginning of the rebound. A daily close below the midline would imply lower prices, but the sustainability of the drop may be short-lived as ETC has only closed one week below the channel since the May plunge.

Additional support lies at the near convergence of the 200-day SMA at $35.05 with the 2020 ascending trend line at $33.33 and reinforced by the June 22 low of $32.53. Any further weakness will attract support at the lower line of the descending parallel channel at $26.10, generating a loss of 32% from the channel’s midline.  

Ethereum Classic price is in a better technical position than many of the cryptocurrencies. It is trading well above the 50-week SMA and the 200-day SMA, two strategically important moving averages. Moreover, ETC is not negatively influenced by a bearish Death Cross pattern, when the 50-day SMA crosses below the 200-day SMA, or the resistance attributed to the June 22 low.

Trading today suggests that  Ethereum Classic price has started its engine, but only a close above $46.98 will restore bullish forecasts and energize ETC to pursue a rally to the 38.2% retracement.

Here, FXStreet's analysts evaluate where ETC could be heading next as it seems bound for a small pull back before the breakout.