Ethereum Classic (ETC) Price Analysis: What’s Behind That Big Breakout

Ethereum Classic (ETC) Price Analysis: What's Behind That Big Breakout 13

Ethereum Classic had formed lower highs and higher lows to consolidate inside a symmetrical triangle on its 4-hour chart since the latter part of June. Price has recently busted through the resistance to signal that an uptrend is in the cards.

The chart pattern spans $12 to $19 so the resulting rally could be roughly the same height. However, moving averages have yet to catch up to the move since the 100 SMA is still below the longer-term 200 SMA. This suggests that the path of least resistance is to the downside or that sellers have the upper hand.

This could mean that a pullback to the broken triangle top around $17 is in order. After all, RSI is dipping into overbought territory on its move up, and turning lower could bring selling pressure back in. Similarly stochastic is indicating overbought conditions and looks ready to head south, so Ethereum Classic might follow suit.

Ethereum Classic (ETC) Price Analysis: What's Behind That Big Breakout 14

News that cryptocurrency trading app Robinhood added Ethereum Classic to its list of tradeable digital assets turned out very bullish for this one as it would bring higher volumes and increased activity.

According to their official announcement on August 6:

Starting today, you can invest in Ethereum Classic on Robinhood Crypto, commission-free.

Robinhood also offers trading in Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and Dogecoin, as well as track market data for 10 other cryptocurrencies. The app is currently available in 19 states, and the company continues to work to expand to more. Earlier this year, Robinhood was able to raise $363 million in a series D funding round to expand its business, bringing its valuation to $5.6 billion.

This decision to add Ethereum Classic to its mix comes just before Coinbase is set to add the option as well. The company announced:

We expect final testing to be completed by Tuesday, August 7, at which point we will announce that we’re ready to accept inbound transfers of ETC. We intend to allow 24–48 hours of inbound transfers through Coinbase Pro and Coinbase Prime before enabling trading.