Technical Analysis and Market Entry: Ethereum Classic (ETC/USD) Eyes Large Wave of Buying Pressure
- ETC/USD is making substantial progress towards more significant gains, as price action forms a bullish pennant pattern.
- The Ethereum Classic development team has scheduled the Atlantis hard fork upgrade in the diary for September 17.
ETC/USD: Recent Price Behavior
Ethereum Classic’s price is on a steady and promising run to the north, as the bulls remain on track with the 2019 price recovery. ETC/USD is trading around its highest levels since November 2018. The price in 2019 so far has already gained around 160%, rising from depressed levels of $3.66 up to the recent high print at $8.33.
Over the last eight weeks, ETC has closed in the green in seven of those, confirming the conviction to pare back the 2018 losses. During the journey to the north, there have been small dips along the way, which every time seem to attract a strong response from the bulls. Since the back end of May, ETC bulls have not been able to progress further.
There is a large area of supply which is seen heading into the big psychological $10.00 mark. ETC/USD has not traded comfortably above this region since October 2018. The zone is where the price had consolidated for around four weeks before resuming chunky downside pressure. In 2018, ETC went on to print a low of $3.25.
Bullish Pennant Structure
Price action since the back-end of May has been moving within consolidation mode, narrowing as each session passes. Given the noted price action, ETC/USD has formed a bullish pennant pattern structure. It is demonstrating growing signs of a breakout to the upside should the bulls capitalize on the setup. The current daily candlestick is edging out form the noted formation, and a closure above could very well invite further buying pressure.
Atlantis Hard Fork Upgrade
Following a developer call earlier this week, the Ethereum Classic team agreed to set a date for the Atlantis hard fork. The targeted block number for the upgrade has been set for activation on block 8,772,000. It is anticipated to hit at roughly 12:00 UTC on September 17.
Atlantis, allied with another forthcoming upgrade know as Agharta, is aimed at boosting chain interoperability between the Ethereum Classic and Ethereum networks. Atlantis is going to be the first step towards ensuring that decentralized application (DApps) migration from either chain is smooth and seamless.
Given the earlier detailed pennant structure, a buy from current levels is attractive. A daily closure above the formation would be additional confirmation. Furthermore, the current price behavior signals a decent probability of a continued drive north. In terms of upside targets; $11.50, $12.00 and then finally $14.00 are eyed. Stops may be considered just below the noted pennant at $8.30.
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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