Technical Analysis and Market Entry: Ethereum Classic’s Breached Wedge Key to Great Heights
- Ethereum Classic enters consolidation mode after a huge 50% spike in one day.
- The bulls have enjoyed solid fundamental developments of late for ETC.
ETC/USD: Recent Price Behaviour
ETC/USD catches tremendous upside momentum within recent trading, jumping to its highest levels in over eight months. The price has rallied some 188% from $4.20 on 29 December, up the high print up at $12.11 on 17 January. Bulls have pushed the price north consecutively for going on five weeks now.
Technically, as the price had been moving within a descending wedge structure, from late May, up until a breach was made in December 2019. Given the detailed duration in which Ethereum Classic had been contained within the pattern, it was subject to a large breakout, as was pointed out in the latest ETC technical article. The bulls were able to capitalize on the wedge to the textbook. Further moves are still eyed to the north, following a likely period of consolidation.
Aside from the significant technical breakout, there are two key fundamental developments to keep in mind. The Ethereum Classic blockchain completed its so-called “Agharta” hard fork, making ETC more interoperable with ETH. Elsewhere most recently, ETC futures were listed on Binance trading platform.
Binance Lists ETC Futures
The world’s largest exchange by traded volume, Binance, announced that ETC futures are available to its traders.
As per the latest announcements, Binance’s ETC futures trading will be based on “perpetual contracts”, which are somewhat different from a traditional futures contract. The main difference is that perpetual contracts do not have a predetermined expiry or settlement date.
Instead, the investment is anchored at its spot index price, and traders may choose to terminate the contract whensoever they choose to do so.
Given the aggressive breakout from the bulls, a brief period of consolidation is firstly eyed, ahead of further moves to the north. There are two areas of interest for taking another buy position, following the successful targets being achieved, from the prior article.
The first point of entry is around the current market price, with the market pullback already observed. Price action is testing the marked 50% Fibonacci, should ETC/USD see the current daily close above, then a buy here would be of interest. The second would be upon a retest of the 61.8% Fibonacci, tracking around $ 7.50 – 7.00 range. Targets to the upside; $10.50, $12.00 and then $13.50. Stops on the first entry would be $7.90; the second entry stops to be placed at $6.53.
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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