Ethereum Classic (ETC) Creates Double Bottom on Resistance Turned Support
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The Ethereum Classic (ETC) price is trading just above the $5.70 area, a level that has turned to support after ETC broke out above it.
Due to the creation of a bullish pattern and breakout from a short-term descending resistance line, Ethereum Classic is expected to move upwards toward resistance levels.
ETC Long-Term Range
The ETC price has been trading inside a range between $4.70 & $7.50 since the beginning of March. ETC has been twice rejected by the resistance area of the range, most recently on Nov. 25, creating a long upper wick and dropping towards support.
Despite the rejection, technical indicators are relatively bullish. The RSI has just crossed above 50 and the MACD close to 0.
Double Bottom Pattern
The daily time-frame shows that the closest support area is found at $5.70. ETC broke out above this level on Nov. 18 and returned to validate it as support after.
Currently, ETC has created what resembles a double bottom pattern inside this area, which is normally considered a bullish formation. However, technical indicators are bearish, suggesting that ETC will break down instead.
A look at lower time-frames is required in order to determine if ETC is more likely to drop towards $4.70 once more or begin moving upwards toward resistance.
ETC Short-Term Movement
Cryptocurrency trader @geoffro822 stated that the ETC price could increase all the way to $9 if it breaks out from the current symmetrical triangle pattern.
Since the tweet, ETC has broken out from the resistance line of the triangle and is in the process of validating it as support.
If ETC can break above the minor $6.15 resistance area, which is also the 0.382 Fib retracement level, the short-term trend will likely turn bullish. This could be the catalyst to another upward move toward the resistance area at $7.50
The first minor resistance area is found at $6.47, the 0.618 Fib retracement level.
A daily close below $5.70 would invalidate this scenario and suggest that ETC is instead heading down towards the long-term $4.70 support area.
Conclusion
After a short-term breakout, it’s likely that Ethereum Classic will continue increasing toward the $7.50 resistance area. This move could accelerate if ETC can overtake the minor $6.15 resistance.
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