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Ethereum Classic Price Analysis: ETC Forming An Ugly Rising Wedge Pattern

ethereum-classic-price-analysis-etc-forming-an-ugly-rising-wedge-pattern
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  • ETC/USD explored lower levels towards $5.5 but managed to jumpstart a reversal.
  • Ethereum Classic is staring into a reversal likely to see it refresh lows towards $5.5.

Ethereum Classic managed to avert a possible slump towards $5.5 support last week. Besides, the conditions across the market were a prime further breakdown. The breakdown below the 100 Simple Moving Average (SMA) 4-hour chart and the 200 SMA 4-hour fueled declines below the vulnerable $6.0 support. ETC/USD explored lower levels towards $5.5 but managed to jumpstart a reversal on hitting lows around $5.68.

ETC/USD 4-hour chart

ETC/USD price chart by Tradingview

The entire cryptocurrency market, mostly driven by Bitcoin made a staggering recovery earlier this week. The strengthening bullish grip saw Ethereum Classic triumphantly rise above the 200 SMA resistance at $6.1032 and the 100 SMA at $6.2969 respectively.

Additional support from the ascending trendline cemented the buyer’s position in the market. ETC curved a trajectory towards the next resistance target at $7.0. Unfortunately, the break above $7.0 failed to make headway resulting in an ongoing correction.

Rising Wedge Pattern

The same 4-hour timeframe shows the formation of a rising wedge pattern. The pattern is usually interpreted as a reversal technical indicator. Two trend lines are used to connect pivotal highs and pivotal lows. The apparent convergence heading to the upper right always hints a breakdown and the beginning of a reversal.

In this case, Ethereum Classic is staring into a reversal likely to see it refresh lows towards $5.5. However, the short-term picture is slightly positive with the Moving Average Convergence Divergence (MACD) at ease at +0.1167. Also, the existing divergence is likely to ensure that the buyers defend short-term support areas at $6.5 and $6.0 in that order.

Ethereum Classic Key Levels

Spot rate: $6.79

Relative change: -0.03818

Open: $6.8305

High: $6.8550

Low: $6.7411

Prevailing Trend: Strongly bearish

The post Ethereum Classic Price Analysis: ETC Forming An Ugly Rising Wedge Pattern appeared first on Coingape.