On June 20, 2019, it was announced that Ethereum Classic (ETC) have begun the testing phase for the upcoming “Atlantis” hard fork.
During this phase, the aim has been to identify and fix all issues or bugs which can occur due to the merger of the base and new codes.
Atlantis is a significant upgrade to the Ethereum Classic Blockchain (ETC), which aims to increase the stability and functionality of ETC. Furthermore, it aims to improve the means of collaboration between ETC and Ethereum (ETH) by ensuring compatibility between the blockchains.
Two main priorities that were identified in the implementation of Atlantis are:
- Developing a high-quality blockchain that can preserve the security of the network.
- Assess the concerns and opinions of the ETC communities.
Considering these priorities, ETC Labs have proposed to slightly adjust the block height of Atlantis from #8,500,000 to #8,772,000 (scheduled to occur in September 2017).
ETC: Trends and Highlights for June 20
- The price is trading inside an ascending channel.
- It has struggled to break out above the 0.618 fib level of the previous drop.
- It has created an evening star pattern.
- It is following a long-term ascending support line.
- A significant bearish divergence has developed in the RSI and the MACD.
Ascending Channel
The price of ETC/USD is analyzed at one-hour intervals from June 2 to June 20
On June 3, the price of ETC reached a high of $9.85. A rapid downward move ensued. The ETC price made lows near $7.5 on June 6. Since then, it has been increasing, trading inside the ascending channel outlined below:
At the time of writing, the Ethereum Classic price was trading near the support line of the channel.
We can see that on June 15-16, it made several unsuccessful attempts at a breakout above the resistance line and the 0.618 fib level of the entire drop. However, the price decreased shortly after.
Therefore, we cannot yet consider the movement inside this channel as part of an uptrend. Rather, it is likely that it is a retracement in response to the rapid decrease.
Evening Star
The price of ETC is analyzed at daily intervals alongside volume from Mar 2019 to June 2019.
The Ethereum Classic price has been following an ascending support line since reaching lows near $4.5 on April 17.
During this time the ETC price has moved with significant volume during three periods:
- During the creation of the first high on Apr 7 (and the subsequent decrease on Apr 8)
- On Apr 17, when the price created a Doji candle, characterized by a small body and long upper and lower wicks (Indicates indecision in the market)
- During the rapid decrease on June 4 (outlined in the previous section)
Next, we will take a look at the decrease on June 4.
On June 2, the Ethereum Classic price created a large bullish candle. It was followed by a candle with a small body that was succeeded by a bearish engulfing candle, which as seen above, occurred with significant volume.
These three candles create an evening star pattern, which is a bearish reversal pattern.
The creation of this pattern supports our hypothesis in the first section that the current increases are a response to the rapid decrease and not the beginning of a new uptrend.
Now, let’s take a look at technical indicators to see if they confirm or reject this idea.
Bearish Divergence
The price of ETC is analyzed at daily intervals alongside the RSI and the MACD.
The ETC price reached higher highs of $8.08 and $9.84 on Apr 7 and June 3, respectively.
During this time, both the RSI and the MACD generated lower values. This is known as bearish divergence and often precedes price decreases.
Furthermore, it is occurring in long-term time-frames and is significant in value.
Therefore, the technical indicators further confirm our hypothesis and indicate that a drop towards the ascending support line is likely coming in the near future.