Ethereum Classic has enjoyed a surge of new bullish support today after Coinbase announced its intentions to list ETC on their platform - Cryptovest reports.
Binance, the world’s largest crypto exchange by trading volume, has also reportedly expanded its trading pairs with ETC, to include ETC/BNB and ETC/USDT.
Currently up 21.55%, ETC has already started to correct from the peak of this morning’s 25% rally. 24hr trading volume is still rising, having nearly quintupled since yesterday from $120,000,000 to its current volume over $520,000,000.
Now that all heads have been turned back towards ETC, how much more can we expect this asset to climb in the build up to the new listing?
Diving into the 1D ETC/BTC chart above, we can see ETC has been consolidating inside a bullish falling wedge since early May. Tumbling back to the base support, ETC trading momentum and volume began to thin notably in the lead up to the breakout, highlighted by the flat MACD trajectory and virtually non-existent candles along the signal line over the last 3 weeks.
RSI was also beginning to track towards the oversold region of the index channel, as a big ETC sell-off (long red candle before the breakout) significantly dropped the token’s value just before the bulls appeared… Talk about bad timing!
Once the asset found the base support, a new wave of buyers acting on the latest announcement was able to springboard the price action over the 0.786 fib resistance at 22,672 Sats. Since the correction however, this fib level is now acting as a temporary barrier holding down a further bullish continuation.
Looking at the Ichimoku indicator we can see that the candles have almost bypassed through the bearish red kumo cloud, which would firmly indicate a reversal. For now, we would like to see a second strong movement take ETC over the 0.786 level to confirm this trend, otherwise the price action will likely end up as a pump and dump.
Observing the EMAs above we can see that the 50, 200 and 500 EMAs (blue, red and yellow respectively) are still widely trifurcated. In order to confirm a strong trend reversal we would like to at least see the 50 EMA move much closer towards the 200 EMA. That being said, if ETC can breach above the 0.618 fib level, it will likely cross over the 500 EMA (yellow) and signal to traders that buying momentum is gathering significantly.
In the chart above, Box 1 represents the next key channel for ETC if it enters into this next bullish phase. Inside here we have a strong psychological resistance at 25,000 Sats which will create some strong selling pressure as short-term investors take profits. The main channel resistance in this box however, sits above at the 0.618 fib level / 26,312 Sats which successfully forced down ETC in the previous run up around May 5th.
It is at this level that gives us our first price target, delivering a 14.93% gain from the 0.786 fib level.
Box 2 stretches out between today’s date and the start of August, and is our next key area to consider assuming Coinbase officially lists Ethereum Classic during the next several weeks.
The second price target of this asset sits at the upper channel resistance at the 0.5 fib level around 28,714 Sats, but could easily break well beyond this with Korean investor support, depending on where the price action is sitting during the listing. This second price target is based on the prediction that after the first price target is met, ETC will begin to retrace back to the lower fib support. This movement from 0.786 fib level to the 0.5 target would represent a 25.43% ROI, virtually identical to the surge we’ve witnessed today.
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