Technical Analysis and Market Entry: Ethereum Classic Bulls Strengthening the Case for Big Move North 

Ethereum Classic
  • Ethereum Classic is back on the path to recovery, running at its third consecutive week in the green.
  • Developers at the Ethereum Classic project announced details of the upcoming Agharta update. 

ETC/USD: Recent Price Behaviour 

Ethereum Classic price action is making decent progress towards firming a recovery. ETC/USD is running towards is third consecutive week in the green, as the bulls look to regain losses. At the start of 2019, the price was making a solid run to the north. It had commenced the year down at depressed levels within the low $4.00 territory. Bullish momentum carried the price back up into the $9.00 area, before losing momentum.

ETC/USD ran into a substantial supply region, ahead of the psychological $10.00 mark. The price had gained a chunky 125% on its path to recovery, which was halted given the above-noted barrier. The bears have since forced a full reversal of the initial upside trend. Nevertheless, a decent period of stabilization has been observed, strengthening the case for another attempt to the north. 

ETC/USD daily chart.

Agharta Date Announced by ETC Developers

Ethereum Classic project developers recently revealed a roadmap for the hard fork, known as Agharta. In terms of this incoming major update, it is focused on the compatibility with Ethereum’s blockchain.

The development team tweeted:

The Agharta upgrade will be inclusive of the ETH Constantinople features making Ethereum Classic fully compatible with Ethereum.

It will be going through several stages; the first of which will be initiated on November 13 with the launch of a test net Morden. The mainnet fork has been scheduled for January 15, 2020; however, the developers noted that the dates we’re preliminary and subject to change.

Elsewhere, the team commented within a blog post:

Ethereum Classic and Ethereum are evolving from the same ancestry, and further technical compatibility will provide a stronger bridge to collaborate on shared infrastructure as well as maintain our unique differences. The recent Atlantis hard-fork was to increase ETH Compatibility, and Agharta will be the second half of that goal.

Trade Recommendation

Given the stability with the bulls latest trending to the upside, further moves to the north are still eyed. A buy position would be attractive upon a breakout from the highlighted range block, with a push also above the marked descending trend line. In terms of targets to the upside; $7.00, $7.50 and the $9.00, with entries to be around $5.50. Lastly, stops placed at the psychological $5.00 mark. 

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.

Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.