Ethereum Classic (ETC): Assessing Possible Targets of This Pattern’s Breakout

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Ethereum Classic enjoyed an impressive surge that knew no bounds within the previous month. Meanwhile, the buying resurgence positioned the token near the Bollinger Bands’ upper side and confirmed a dominance buying superiority.

ETC climbed beyond the BB’s basis line after the altcoin snapped its long-term trend-line support. However, its present patterned breakout might witness short-term obstacles within the nearest resistance range. While publishing this post, the alternative token hovered at $43.47, thanks to the latest upside moves.

Ethereum Classic Daily Timeframe

The 4-month trend-line resistance restricted the buying momentum until mid-June. Meanwhile, the overall market recovery saw ETC establishing a footing beyond the 20EMA and 50EMA.

The bounce back from $13.6 formed the base for a staggering 217% return on investment (ROI) until this publication. The short-term EMAs and the basis line maintained northbound tendencies, reflecting surging buying momentum.

As the POC (Point of Control) triggered an optimistic pennant-like pattern, the latest bullish engulfing candle affirmed the bullish breakout. Remember, the previous bullish breakout opened the path for another bullish move on the daily price chart.

Meanwhile, the $47 – $49 resistance remains sturdy, and reversals here would initiate a short-term slowdown. In such a scenario, buyers might re-join around the Point of Control at the $34 – $36 level. A possible golden cross between the 50EMA and 200EMA might boost the probability of extended growth.

Reasoning

The RSI (Relative Strength Index) swayed around the overbought territory, reflecting a massive buying superiority. Possible reversals from this territory might ease the amplified buying momentum.

Moreover, the Chaikin Money Flow and the On-balance volume recorded lower highs within the past few days. A reversal from their respective trend-line resistances might form bearish divergences with ETC price.

Final Thought

Ethereum Classic’s bullish pennant breakout might meet the ceiling at $47 – $49. That would open massive bounce-back opportunities after the near-term setback, extending the token’s bullish run.

Profit-booking levels would stay as discussed. Lastly, on-chain developments and overall market sentiment would influence upcoming actions. This evaluation remains vital to identify possible bullish invalidations.

Stay tuned for upcoming crypto news.

Editorial credit: sdx15 / shutterstock.com


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