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Which Bullish setup is in play to trade ETC price action?

  • Ethereum Classic price action erases the incurred losses of Tuesday.
  • ETC price looks set to try and tie up the week with gains.
  • Expect to see a grind higher towards $48.33 as ETC price action trades in a bullish triangle.

Ethereum Classic (ETC) is trading inside a bullish right-angle triangle that forecasts  a breakout above $48.33 and a target at $52.44, with the monthly R1 resistance level in the middle as a pivotal point for some profit taking. From where ETC price action is currently trading, that would constitute a 30% price increase, and with confirmation that the green ascending trend line in the triangle holds plenty of support, the trade setup almost looks like a sure thing. It is now up to the bulls and global economic sentiment to get this breakout underway and see it unfold.

ETC locks in a solid bullish triangle breakout

Ethereum Classic price sees a bounce off its green ascending trend line this morning as the trend continues higher and the line undergoes a fourth test for support. A similar framework can be identified on August 09, where price action tanked one day, only to find support and bounce off it the next day to rally higher. In a repetition, that would mean that ETC price action is set to rally and break out of the bullish triangle above $48.33 sooner than expected. 

ETC price has, however, one intrinsic barrier it needs to overcome first: the double top against the Low Of the Day (LOD) of July 27, 2021. Currently, that level has not been broken but could be due to breaking if that pattern of August 09 repeats. After the breakout, expect to see a pop towards $52.44, with the monthly R1 resistance level at $50,00 to act as a small profit-taking level before ticking the ceiling at $52.44 and printing 30% gains.

ETC/USD Daily chart

ETC/USD Daily chart

To the downside, a break of the green ascending side of the bullish triangle with global markets taking a step back could be enough to see a full retrace towards the start of the triangle in the lower $30s. That would mean roughly 17% of losses towards $32.90 in search of support. Luckily, the support level is additionally underpinned by the monthly pivot at $31.70, with the double lock suggesting it will catch any falling knives.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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