Ethereum Classic ETC price shows a gain of over 17% for the week but still carries a loss of 14.7% for the month. If the current breakout above the 2018 high of $46.98 sticks, the ETC price faces only the 50-day SMA on a path to the upper line of the descending parallel channel. For now, the outlook remains neutral until the Ethereum Classic ETC price can close above $46.98.

Today, Ethereum Classic ETC price is attempting to knock out two resistance levels, the 2018 high at $46.98 and the 50-day SMA at $50.10, but the effort is fading as today progresses. The ETC move is supported by above-average trade volume, unlike the previous three days of the new rally. 

Ethereum Classic price may be starting its engines

The magnitude of the new ETC price rally originating on July 21 is 23%, putting it well below the four-day burst in late June of 44% and the 43% gain at the end of May, thereby questioning the impulsiveness of the current price rebound and Ethereum Classic price sustainability.

A successful close above the 2018 high and 50-day SMA today would release Ethereum Classic price to test the upper line of the descending parallel channel at a price of $56.30, followed by the June 30 high of $62.45. There is no further resistance level until the grouping of the 38.20% Fibonacci retracement level of the May-June correction at $80.75 and the May 26 high of $84.09, presenting an intriguing 68% gain for ETC investors.

If Ethereum Classic's price fails to hold $46.98 today, it invites a retracement level of the rally to the midline of the descending parallel channel at a price of $38.19, the beginning of the rebound. A daily close below the midline would imply lower prices, but the sustainability of the drop may be short-lived as the ETC price has only closed one week below the channel since the May plunge.

Additional support level lies at the near convergence of the 200-day SMA at $35.05 with the 2020 ascending trend line at $33.33 and reinforced by the June 22 low of $32.53 level. Any further weakness will attract support at the lower line of the descending parallel channel at a price of $26.10, generating a loss of 32% from the channel’s midline.  

Ethereum Classic price is in a better technical position than many of the cryptocurrencies. It is trading well above the 50-week SMA and the 200-day SMA, two strategically important moving averages. Moreover, ETC price is not negatively influenced by a bearish Death Cross pattern, when the 50-day SMA crosses below the 200-day SMA, or the resistance support attributed to the June 22 low.

Trading today suggests that  Ethereum Classic ETC's price has started its engine, but only a close above $46.98 will restore bullish forecasts and energize ETC to pursue a rally to the 38.2% retracement.

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