Technical Analysis and Market Entry: ETC/USD Subject To A Big Bull Breakout
- Ethereum Classic is consolidating following a 200% push higher seen from late December – early February.
- ETC/USD price action has formed a bullish pennant structure, subject to a breakout.
ETC/USD: Recent Price Behaviour
Price action for ETC/USD since 31 January has very much been moving within consolidation mode. It comes following the strong push to the upside, that has been observed since the back end of December. The price has managed to gain over 200%, rallying from $4.20 up to recent highs above $13. It was the highest price seen since early April 2019, the strong move came following a descending wedge breakout and retest.
The above-detailed pattern had contained Ethereum Classic, from June right up until December 2019. Market bulls at the back end of the year were able to force a breach, which invited the upside momentum. The recent ETC/USD consolidation has resulted in the formation of a bullish pennant structure. Do note that the bulls between 17 – 26 January had formed a pennant, which resulted in the most recent big buying move.
Ethereum Hash Rate Hit New All-Time High
Recently, Ethereum Classic (ETC) saw a huge spike in its hashrate, moving past its previous all-time highs. In a sign of growing strength, the ETC network is arguably now more secure than ever before. As the official Twitter for Ethereum Classic (ETC) reported earlier in the week, its network’s hash rate now stands at an all-time high. They tweeted “EthereumClassic Continues Maintaining Its All-Time Hashrate Highs!”
Weekly Chart View
Ethereum Classic bulls have been enjoying a strong run to the north for eight consecutive weeks. The commencement of the ascent began following the price bottoming out late in 2019, where ETC/USD fell to its lowest seen since December 2018. In terms of weekly resistance, this can be observed at $13.30, a former top area between August – September 2018.
Given the earlier noted pennant structure, greater moves to the north do remain attractive. In terms of entry, around the current market price, within the pattern. Targets to the upside eyed at; $13.50, $14.00 and then $15.00. Stops to be placed just below the pattern at $10.90. The bulls have much room to go on to eventually re-challenge their all-time high areas.
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.
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