Ethereum Classic Price Analysis: ETC Poised to Sustain the Uptrend toward $100
- Ethereum Classic price weekly rally stalls slightly above $60.
- The uptrend sustains in an ascending parallel channel after holding support at $52.
Ethereum Classic led the price action in the cryptocurrency market on Wednesday despite most crypto assets struggling to hold above crucial support levels. While ETC rose to levels past $60, Bitcoin (BTC) corrected from areas around $36,000.
Etheruem Classic price made a brief correction following the majestic upswing due to intensifying selling pressure above $60. The four-hour 200 Simple Moving Average (SMA) failed to anchor the price as losses stretched to $52. At the time of writing, ETH trades around $54 while bulls battle for balance to resume the uptrend.
Is Ethereum Classic Uptrend Sustainable?
An ascending parallel channel on the four-hour chart shows that ETC's uptrend is intact despite the minor correction from the weekly high. The asset's immediate upside is capped by the channel's middle boundary and the 200 SMA. Cracking this confluence resistance is crucial for sustaining the uptrend and bolstering Ethereum Classic price toward $100.
On the downside, buyer congestion at $52 provides immediate support. Holding this fundamental level in the near term will allow bulls to focus on enhancing the uptrend. Nevertheless, a four-hour close below it may see losses extend.
The ascending parallel channel's lower edge is in line to provide support in conjunction with the 100 SMA. As long as Ethereum Classic price can hold within the confines of the channel, traders can expect an uptick.
ETC/USD four-hour chart
Looking at the other side of the fence
If support at $52 shatters, losses will gain momentum amid an increase in overhead pressure. The Moving Average Convergence Divergence (MACD) indicator puts into perspective the potential correction after stalling within the positive region.
A sell signal will be triggered when the 12-day exponential moving average (EMA) crosses beneath the 26-day EMA. Moreover, as this trend momentum indicator loses ground toward the zero line, losses are expected to gain traction and validate the downtrend.
The same bearish outlook is reinforced by the Relative Strength Index (RSI). In addition to showing oversold and overbought conditions, the RSI indicates how strong the bears or bulls are. The retreat from the oversold to the midline hints at an aggressive bearish front.