A symmetrical triangular continuation pattern may be seen in the Ethereum Classic price.
The digital asset is under pressure due to a declining 200 six-hour simple moving average (SMA).
ETC is vulnerable to a test of the 2018 high if it falls below $52.82.
The price of Ethereum Classic is forming a symmetrical triangle continuation pattern, indicating that the rally that began on June 22 will be extended to the upside. As ETC approaches the peak of the triangle, the pattern appears to be nearing its conclusion, prompting investors to prepare their portfolio decisions.
The price of Ethereum Classic rose 92 percent from its June 22 low, overcoming resistance from the declining May trend line and the previously unattainable 2018 high of $46.98. It was a bullish break from the minimal strength that other altcoins had been experiencing.
After the advances from the June 29 high, the ETC price has been consolidating in a small way. Despite this, the overbought state represented by intraday Relative Strength Indexes (RSI) was effectively released, and the 50 six-hour SMA was turned into support after weeks of considerable resistance.
The construction of a symmetrical triangular pattern as a result of the modest corrective process, with Ethereum Classic price approaching the peak of the formation, signaling that ETC should activate at any time or risk losing the benefit of the constructive consolidation. Price reduction leads to price expansion, as it always does.
The symmetrical triangle’s calculated advance is 19 percent, implying a target price of $67.09, successfully putting Ethereum Classic above the important 200 six-hour SMA at $57.94. The rally potential is limited in comparison to the initial bounce from the June 22 low, but it strengthens Ethereum Classic’s position against the 2018 high of $46.98.
The 200 six-hour SMA at $57.94 and the June 29 high of $62.45 are two points of resistance for the rise.
The price of Ethereum Classic is currently falling out of the symmetrical triangle to the downside, however this is inconclusive. Furthermore, ETC has not fallen below the critical support level of $52.82. Nonetheless, as the trading day progresses, it requires attention.
6-hour chart of ETC/USD
The symmetrical triangle’s line of support is $52.82, but if it fails, Ethereum Classic price should find support around the confluence of the July 2 low of $50.67 and the 50 six-hour SMA at $50.63.
Any ETC weakness below those levels would guarantee a test of the 2018 high, implying a 13% drop from current levels.
With a 90% increase and a recovery of major resistance levels, Ethereum Classic price gained a head start on the rest of the cryptocurrency market. If ETC breaks out of the continuation pattern, it will only strengthen the digital token’s relative strength and enhance its prominence among investors./n
