Ethereum Classic (ETC) is currently making another attempt at breaking out above $7.50, something it has struggled to do since May.
The price action and a variety of technical indicators suggest that ETC will be successful in breaking out.
Ethereum Classic Long-Term Support Levels
ETC has been following an ascending support line since November 2018 and has validated it four times since.
Since April 2020, ETC has also made several breakout attempts above the $7.50 resistance area, which is the 0.382 Fib retracement level of the most recent downward move. If successful in breaking out, the next resistance area would be found at $9.70.
Technical indicators are bullish, supporting the possibility that ETC breaks out. This would further be confirmed by a MACD movement above the 0-line and a bullish cross in the Stochastic oscillator.
Cryptocurrency trader @Trader_blitz outlined an ETC chart, stating that an upward move towards $17 and then eventually to a new all-time high is expected. While this is possible, and somewhat supported by long-term indicators, there are numerous resistances left for ETC to clear before it could get there.
Attempts At Moving Upwards
The daily chart is similarly bullish.
First, we can see that ETC has moved above the $3.65 area and validated it as support after. As long as ETC is trading above this area, it is expected to continue moving higher towards the resistance areas previously outlined.
Technical indicators are similarly bullish. The RSI has moved above 50, the MACD is above 0 and increasing, and the Stochastic oscillator is extremely close to making a bullish cross.
The two-hour chart shows that ETC is also following a short-term ascending support line and has flipped the minor $6.25 area as support. As long as it is trading above them, ETC is expected to make another attempt at moving above $7.50.
ETC Wave Count
The wave count suggests that ETC began a bullish impulse (shown in white below) after its March lows. If so, it is currently in wave 3, which has a preliminary target of $11.90. This falls close to the range highs from February.
The sub-wave count for wave 3 is shown in orange:
A closer look at the sub-wave formation shows that ETC has likely begun sub-wave 3, which has a preliminary target of $10.96.
The minor sub-wave count is shown in black.
A decrease below the sub-wave 2 low of $5.60 would invalidate this particular count.
Conclusion
The Ethereum Classic price is expected to soon reverse its bearish trend and begin to move upwards towards the primary resistance level at $7.50.
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