Ethereum Classic ETC price closed 2Q with a 300% gain, a remarkable performance on an absolute and relative basis. In contrast, Ethereum's price returned almost 20%, while Bitcoin's price lost 40% and Ripple gained 24%. Dogecoin's price was also a standout with a 375% gain.
The leadership highlighted by the 2Q performance has positioned Ethereum Classic ETC price to continue the gains in the 3Q as ETC is forming the right shoulder of an inverse head-and-shoulders pattern level on the daily chart. The right shoulder has mirrored the left shoulder with a mild price range while being instructed by the Anchored VWAP from March 29, which is currently at a price of $55.39. Additionally, both shoulders have formed above the important 2018 high of $46.98.
The measured move of the inverse head-and-shoulders pattern level is 90%, projecting an ETC price target of $119.73 from the current position of the neckline. A price rally of that dimension would overcome the resistance defined by the 38.2%, 50%, and 61.8% Fibonacci retracement levels of the May-June price correction but fall short of the 78.6% level at $131.74. Moreover, it would put Ethereum Classic's price just 30% below the all-time high of $158.76.
Standing in front of the bullish ETC price narrative is the declining 50-day SMA at $59.29. The tactically important moving average could delay the breakout above the neckline in the short term, especially in a weaker crypto market.
To date, Ethereum Classic's price retracement of the sharp rebound from the June 22 low has been mild and far less than anticipated. Despite the relative strength, investors still need to be prepared for a deeper pullback, even to the 2018 high at the price of $46.98, until ETC triggers the inverse head-and-shoulders pattern.
If ETC registers a daily close below the 2018 high, it would be a setback for the bullish narrative and raise the probabilities that the rally was a one-off event rather than the beginning of a new, sustainable price uptrend for the altcoin.
As the crypto market attempts to rebound off corrective lows, it is imperative to seek out relative strength in individual cryptocurrencies, discern their patterns and plot the timely entry point or points.
Ethereum Classic ETC price has shown relative strength, charted a clear pattern and provided a timely entry price, thus creating one of the better opportunities for Crypto market operators.
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