For the second time in four days, the Ethereum Classic price is testing the important support outlined by the 2018 high of $46.98.
ETC initiated a symmetrical triangle pattern on July 7 with a $44.00 measured move target.
Between $55 and $57, the 50-day simple moving average (SMA) joins forces with Anchored VWAP to form formidable resistance.
As the broader cryptocurrency complex faces increased selling pressure, Ethereum Classic is battling for support at the 2018 high. If the daily close falls below $46.98, the weakness is expected to continue down to the measured move objective, and maybe much deeper if the resumed selling acquires traction. However, if ETC maintains its 2018 high, the digital coin will have a bright future.
Ethereum Classic price quietly developed a modest symmetrical triangle pattern around the Anchored VWAP from March 29 at $55.35 but below the sliding 50-day SMA from June 30 to July 6. Following the 90 percent comeback from the June 22 low, it was a positive development, but the pattern did not resolve to the upside. Instead, it dipped below the bottom trend line of the triangle on July 7, creating the chart formation.
The symmetrical triangle pattern’s measured move is 19 percent, putting the ETC price goal at $44.00. It would be a 30% drop from the rally high of $62.45 on June 30. Although the decrease is not illegal, it would push the price of Ethereum Classic below the 2018 high, turning superior support into a resistance issue.
There are no notable support levels until the confluence of the 200-day SMA at $32.81 with the June 22 low at $32.53 and the declining May trend line, currently at $31.81, if Ethereum Classic price does not find support around the measured move objective. A drop to the June 22 low would result in a 31% drop in ETC from its current level.
To consider higher pricing, Ethereum Classic must maintain its 2018 high. A successful test of $46.98 would prompt the rally that began on June 22 to resume. A daily closing above the 50-day SMA at $56.58 is the confirmation level. Following that, ETC investors can aim for the June 30 high of $62.45, and if the market cooperates, the altcoin might probe the $80.75 Fibonacci retracement of the May-June slump.
Daily chart of ETC/USD
The fact that the cryptocurrency market is becoming increasingly unstable does not inspire confidence that Ethereum Classic’s price will remain stable at $46.98. Even so, if the risk-on asset class’s climate changes, ETC can reassert some of the leadership it showed after the June 22 low. Nonetheless, worries have increased, with experts advising that there is no need to build up a large investment in ETC at this time./n
