Technical Analysis and Market Entry: ETC/USD Bullish Momentum Picking Up Pace As Critical Resistance is Broken
- Ethereum Classic is back within its bullish ways, as price rallies for three consecutive weeks.
- ETC/USD breaks above a descending wedge structure, leaving the door open to greater upside.
ETC/USD: Recent Price Behaviour
Ethereum Classic recently has been enjoying a decent push to the upside, making a solid case for recovery. The price bottomed out at the back end of 2019, in December, down at $3.45, following a tough second part of the year. ETC/USD had returned down to its lowest levels that had been seen in a year, December 2018 lows.
Fortunately for ETC, the technical price action had some historical data to support the price effectively. As the token starts to further mature, there is more prior price action to observe where the price is likely to attract buyers or sellers. Given the dropping down to the noted lows seen just in December 2019, the price was very much supported.
ETC/USD commenced a recovery on 18 December at $3.50, which has seen the price gaining some 65% at the time of writing. It has been rallying for four consecutive weeks, the best upside runs seen since April 2019. As a result, the price printed a high up at $5.80, levels that have not been observed for over three months.
Descending Wedge Structure Breakout
Price action via the daily chart view had been moving within a descending wedge structure. It had contained ETC/USD from June 2019, when it started to move to the downside. A decent breakout was observed on 26 December, inviting a substantial wave of upside momentum. The move out from this pattern has left the foot open for further recovery.
Ethereum Classic Successfully Completes ‘Agharta’ Hard Fork
Ethereum Classic has successfully completed the “Agharta” hard fork at block number 9,573,000 at 06:26 UTC on Sunday, according to etcnodes.org.
Agharta implements Ethereum’s Constantinople upgrades to the Ethereum Classic network. Itnd has been adopted as an accepted Ethereum Classic Improvement specification which can be found at ECIP-1056. The changes that its brings are to enable three hard fork features: EIP 145 (Bitwise shifting instructions), EIP 1014 (Skinny CREATE2 opcode), EIP 1052 (EXTCODEHASH opcode)
Moreover, it is very much similar to the network’s last backwards-incompatible upgrade in September, Atlantis, Agharta makes Ethereum Classic more interoperable with sister-chain Ethereum.
Given the promising signs of upside pressure, further moves to the north are still eyed for ETC/USD. An entry around the current market price, as the price remains supported within a zone, $5.50-25 range. Targets eyed at; $7.00, $7.50 and then $9.00.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.