Ethereum Classic (ETC) Holds Strong, Defends A Break Below 21 Day EMA

Ethereum Classic (ETC) has been trading sideways for the past five days but it can be credited with one achievement and that is holding strong above the 21 Day EMA. The price has made two attempts to break out during the past 48 hours but it has failed miserably. The daily chart for ETC/USD shows that the price is unlikely to break past the $4.2 resistance anytime soon. That being said, the price is holding strong above the 21 Day EMA and as long as it defends that level, Ethereum Classic (ETC) bulls have nothing much to worry about. RSI on the daily chart has also painted a bull flag same and indicates that the price might have ample room for a run up.

Volume has dried up significantly compared to the past few months which means that the next move could push the price hard in either direction and most retail traders would not be able to ride it. This is why margin trading is so risky at current levels. The price action is choppy and you do not have ample time to get in and get out before the next big move. The best course of action at this point is to start accumulating if you believe in the long term potential of Ethereum Classic (ETC). The daily chart shows that ETC/USD is still trading within a large ascending channel and is currently close to the bottom of this channel. Soon as the price breaks past the $4.2 resistance, it will be in the clear to resume its rally towards the top of the channel.

If Ethereum Classic (ETC) succeeds to rise in the next few weeks, we could see the price approach the top of the channel to reach a price target of $6 or higher before it can continue higher or fall back to lower levels. If Bitcoin (BTC) retests its previous market structure like we expect it to, then other cryptocurrencies will have to do the same. If that happens, we could see ETC/USD rise a lot higher in the weeks ahead. This means that it is a good idea to invest in Ethereum Classic (ETC) at this point whether you believe in its long term potential or not. This cryptocurrency has far been left behind while the rest of the market has been shooting up. Seeing as how the Dapp development activity is on the rise and new developments teams as well as companies are getting more interested in this blockchain, this might be the best time to start accumulating before the upcoming rally.

The daily chart for ETC/BTC shows that the price is about to break out of a falling wedge which could see it rise significantly against Bitcoin (BTC) in the weeks ahead. The 200 Day MA could be a potential barrier but once ETC/BTC enters an uptrend, it will be able to break past it eventually. Investing in Ethereum Classic (ETC) at this point is a lot similar to investing in Litecoin (LTC) in its early stages. Just like Litecoin (LTC), Ethereum Classic (ETC) has a limited supply. Moreover, Litecoin (LTC) set out to offer alternative solution to some of the problems with Bitcoin (BTC). Ethereum Classic (ETC) is doing the same by offering alternative solutions to lack of immutability and decentralization issues with Ethereum (ETH).