Ethereum Classic (ETC) may have initiated a bullish trend reversal starting on June 18. However, since July 29, it has been on a decline, potentially retracing in response to the preceding upward movement.
ETC has been in a downtrend since reaching its all-time high of $179.83 in May 2021. This downward trajectory led to a low of $12.47 in June. The decline appeared to cause a breakdown from the $17 horizontal zone—a critical area that had acted as resistance throughout the 2018–2021 period. However, ETC soon rebounded and reclaimed this zone, turning the earlier breakdown into what appears to be a deviation (often marked with a red circle in technical charts).
This recovery pushed the price toward a descending resistance line that has been in place since August. ETC made its fifth attempt to break above this line (often indicated with a red icon). Since the resistance weakens with each test, a successful breakout remains likely.
Additionally, the weekly Relative Strength Index (RSI) has risen above 50 (a signal often marked with a green icon). It remains to be seen whether the indicator will maintain this level or fall below it, similar to what occurred in April. If the RSI stays above 50 and the price breaks above the resistance line, it would confirm a long-term bullish reversal.
Continued Upward Momentum
The daily chart shows that ETC broke out of a short-term resistance line on July 15. Following this, the price surged by 165% over the next 14 days, reaching a high of $45.36 on July 29.
Since then, however, the price has been correcting. It is currently approaching the 0.5–0.618 Fibonacci retracement support zone, between $25 and $29. This area also coincides with a previous horizontal support zone. As a result, a bounce is likely once the price reaches this region.
Moreover, the daily RSI has moved above 50, which is typically considered a bullish signal.
ETC Wave Count Analysis
Cryptocurrency trader @Altstreetbet tweeted an ETC chart, suggesting that it was the first large-cap altcoin to begin a bullish count.
The most probable wave count indicates that ETC completed a five-wave upward movement (shown in white) from the June 18 low. This implies the start of a new bullish trend.
The current decline may be part of an A-B-C correction structure (shown in black). The most likely target for the end of this correction is the $25–$29 range, which aligns with the 0.5–0.618 Fibonacci retracement levels.
Frequently Asked Questions
What caused Ethereum Classic (ETC) to surge by 165% in two weeks?
The surge was likely driven by a combination of technical breakouts, renewed investor interest in alternative cryptocurrencies, and broader market momentum. The breakout above key resistance levels and improved RSI readings contributed to the bullish sentiment.
Is Ethereum Classic (ETC) a good investment after the recent pullback?
While the pullback to the $25–$29 support zone may present a potential buying opportunity, investors should conduct their own research and consider market conditions. Technical indicators suggest a possible rebound, but cryptocurrency investments carry inherent risks.
How does the weekly RSI impact ETC's price trend?
The weekly RSI moving above 50 is often viewed as a bullish signal, indicating strengthening momentum. If it remains above this level, it could support further price appreciation. However, a drop below 50 might signal renewed selling pressure.
What is the significance of the Fibonacci retracement levels?
Fibonacci retracement levels help identify potential support and resistance areas based on prior price movements. The 0.5–0.618 range is commonly watched for trend reversals or continuations.
Can ETC reclaim its all-time high of $179.83?
Reaching all-time highs would require sustained bullish momentum, increased adoption, and positive market dynamics. While possible in the long term, it is not guaranteed in the near future.
Where can I learn more about trading strategies for cryptocurrencies?
For those interested in deepening their understanding of market trends and technical analysis, explore more strategies that can help navigate volatile asset classes like cryptocurrencies.