Published
5 years ago on
December 21, 2018
Ethereum Classic (ETC) had a good run but the price seems to have run into a strong resistance for the time being. This means that we are likely to see a sharp pullback to lower levels before the rally can resume. For ETC/USD, this means completing the Inverse Head & Shoulders pattern that it is trading in. A retracement will complete the right shoulder for the IH&S which will enable Ethereum Classic (ETC) to pierce through the resistance and rise close to $10. Ethereum Classic (ETC) offers a good risk/reward for long term investors but traders are reluctant to enter long positions just yet because ETC/USD has been rejected strongly at the resistance. The price is expected to retrace below $4 in the days ahead and may settle around $3.6 before continuing upwards.
Near term outlook for ETC/USD does not look good as the RSI is heavily overbought and the price has run into a historical resistance. However, a fall below $4 is not going to be easy this time. That being said, the price is unlikely to rally higher without falling below $4 first. It may take a while for ETC/USD to break below key supports to form the right shoulder but it is bound to happen nevertheless. Ethereum Classic (ETC) has a very low probability of breaking past the current resistance at this point. This means that over the weekend, we are likely to see the price retrace to pave way for the IH&S to complete. That will enable ETC/USD to garner the momentum to break past the resistance and reach higher levels.
Chart for ETC/BTC (1D)
Many in the crypto community were surprised to see Ethereum Classic (ETC) fall to such low levels given its strong fundamentals, but then again we have seen all sorts of things happen in this bear market. For instance, there was the hash war between two groups that tore apart Bitcoin Cash (BCH). Most cryptocurrencies were hit very hard by the bear market. By comparison, Ethereum Classic (ETC) managed to do a lot better. If it hadn’t been for the recent infighting that saw ETC Dev close shop, we may never have seen Ethereum Classic (ETC) fall below $5. That being said, this is a golden opportunity for people who believe in the long term future of Ethereum Classic (ETC) to accumulate at dirt cheap prices.
Of course it is not going to be easy because the fear and uncertainty is at its peak. A lot of people are worried whether Ethereum Classic (ETC) will be able to achieve its objectives in the absence of ETC Dev. After all, it was ETC Dev that saved Ethereum Classic (ETC) from becoming a dead coin after the Ethereum (ETH) fork. There also remains a strong probability that many in the Ethereum Classic (ETC) community are not pleased with the new leadership under ETC Labs and may cash out to invest in other projects. The risks are high, but so are the rewards.
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