Technical Analysis and Market Entry: Ethereum Classic (ETC) – Bulls Eye Bigger Moves North

Ethereum Classic
  • Ethereum Classic (ETC) is moving back towards the north, after being forced to give up some 25% of its recent run higher.
  • Ethereum Classic’s development was set to delay in anticipation of the Atlantis upgrade. The latest now suggests that the first stages of integration are expected within two weeks.

ETC/USD: Recent Price Behavior

Ethereum Classic’s price is regaining bullish momentum after a period of hard selling. ETC ran into a significant barrier last week as the bulls attempted to push back into the psychological $10.00 territory. The price rallied to its highest level seen since April 7, before losing that decent upside momentum.

ETC fell back within the control of the bears, as the price dropped for four consecutive sessions. It lost as much as 25% over the noted cooling period. ETC/USD was forced to retreat down to a critical area of support. An ascending trend line that has been running since May 14 managed to catch the falling price, preventing a total free-fall.

ETC/USD daily chart.

Testing for ‘Atlantis’ Upgrade to Begin this Month

At the back-end of May, the Ethereum Classic developer team had failed to reach an agreement on moving forward with its awaited system-wide code upgrade. It was set for these upgrades to be delayed, given the failure of reaching consensus.

Developers were planning the integration of the upgrade, dubbed Atlantis, which is a set of 10 EIPs or Ethereum Improvement Proposals. Ethereum Classic has been taking significant steps towards the introduction of changes to the network. The implementations are expected to ease the interoperability between ETC and Ethereum.

Atlantis is said to be the first of two protocol upgrades or hard forks. These are focused on incorporating the EIPs, which have already been activated on Ethereum.

The latest update suggests that developers are considering launching the upgrade and the Ethereum Classic testnet within the next two weeks. It would come ahead of a full upgrade in August on the mainnet. These details came after the latest developer meeting, which focused on stepping up efforts to meet pre-existing timelines. The ecosystem stakeholders were said to have expressed their desires to see the system-wide upgrade happen sometime later this summer.

Furthermore, it was reportedly agreed that the testnet activation of Atlantis could occur within the next two weeks or June 19, instead of in early August.

Trade Recommendation

Given the support of the price fundamentally, allied with the technical picture, taking a buy looks somewhat promising. There is a stubborn area of supply in proximity to the current level, tracking from around $8.65-$8.90. Once the bulls can break this area down again, with a daily closure above, eyes will be on further moves north.

An entry around the $9.00 would be attractive, with eyes on a firm push back into $10.00. The next target area of interest would be $12.00; the price last traded up at these heights in September 2018. Lastly, stops may be considered just below the noted ascending trend line, $7.40. Another potential point of entry could be upon a retest of the trend line around $7.60 if the bulls fail to break the above supply zone.

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.

 

Author:
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.