Key Highlights
- Ethereum classic price surged higher against Bitcoin and traded close to the 0.0048BTC level.
- There is likely a double top pattern forming around the mentioned level, so the bulls need to be very careful.
- There is a bullish trend line formed on the hourly chart of ETC/BTC, which may act as a support if the price corrects lower.
Ethereum classic price continued its uptrend and gained by more than 20%. However, I feel it may be topping soon for a short-term correction.
Ethereum Classic Price Resistance
Ethereum classic price ETC surged further during the past 24 hours against Bitcoin and traded above the 0.0040BTC resistance. A new weekly high was in at 0.0048BTC, which also represents the previous swing high in ETC/BTC. There is a high probability of ETC finding sellers around the stated level.
In my view, there can be a strong rejection around the swing high, which will then create a possibility of a double top pattern. If the price corrects lower, then an initial support can around the 23.6% Fib retracement level of the last leg from the 0.0017BTC to 0.0048BTC. However, if the double top pattern plays well, then the pair may decline further.
In that case, the pair may test the 38.2% Fib retracement level of the last leg from the 0.0017BTC to 0.0048BTC. There is also a bullish trend line formed on the hourly chart of ETC/BTC, which may provide bids during the correction phase. All we need to do at the moment is to keep a close eye on the highlighted resistance area and look for a rejection for a downside move in the short term.
Hourly MACD – The MACD is strongly placed in the bullish zone, but may soon come under a divergence.
Hourly RSI – The RSI is around the overbought levels, calling for a correction in the near term.
Major Support Level – 0.0035BTC
Major Resistance Level – 0.0048BTC
Charts courtesy – SimpleFX
