Ethereum Classic, at the time of writing, was the 20th-largest cryptocurrency based on market cap. Once in the top 10 cryptocurrencies, the coin has failed to stay afloat. The coin seems to be doing good as the price had surged 11% in the last 24 hours.
With the formation of a rising wedge ETC's outlook seems bearish, at least in the short term. If the bearish breakout plays out, ETC risks dropping 13-20%, putting the price of 1 ETC at $4.27 at the lowest.
Source: Trading View.
Ethereum Classic aka the original Ethereum chain has performed considerably better in the last 24 hours, causing the price to surge from $4.4 to $5.5. At the time of writing, the price was trading at $5.23 and was retracing from the upper line of the rising wedge. The downward trajectory of the price and into the lower line of rising wedge would put 1 ETC at $4.8 in the 8-10 hours.
A bounce from here is unlikely, hence a breach of the lower line of the rising wedge and a successive close below it would confirm the breakout. The targets from this level include $4.629 at a 13% downtrend, $4.279 after a 20% decline.
Alternatively, if the price decides to surge higher and cause a bullish breakout, there are multiple resistances waiting for the price. The first level is at 20% from the current price aka $6.40, following this level is $7.308, another 12% surge from the previous level.
Furthermore, the decline in the 50-day moving average [ma] [blue] and its trend towards the 200-day MA [green] indicates an approaching death cross. Either way, an uptrend for ETC would also be resistance by the 200-day MA, which is typically considered to be a strong level.
Hence, if there is a bullish breakout, it will not close higher than $6.17, which invariably favours the bearish scenario and a 13-20% drop in the next couple of days.
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