Ethereum Classic Breaks Out, Could Reach 75,000 Satoshis [Premium Analysis]

The Ethereum Classic price had been trading near 50,000 satoshis for the majority of November and December. After a failed attempt at initiating an upward move, the price was successful in doing so on December 26. Cryptocurrency trader @CryptoNTez stated that the Ethereum Classic price has reached his first target at 64,000 satoshis. He states that a flip of the resistance at this level would cause the price to increase towards 73,000 satoshis.

update on $ETC

Target reached at ~64k sats (10%+)😏

Closed and locked profits. If a new Flip occurs at this level, then aiming for a new leg up at ~73k

Thank you🎅#ETC pic.twitter.com/b3HvUpD86y

— Nico (@CryptoNTez) December 26, 2019

Let’s take a closer look at price movement and see how likely this upward move is to transpire.

Descending Resistance Breakout

The Ethereum Classic price had been following a descending resistance line since August 19. The price broke out on December 12 and validated the resistance line afterwards on December 18. It began an upward move the next day. While volume was small initially, it picked up afterwards. We suggested this increase might occur in our previous article, where we discuss the long-term ramifications of this upward move.

Ethereum Classic’s Elliott Waves

The movement after the breakout could follow a five wave Elliott formation. The first wave was small, with volume being slightly above average. The ensuing retracement was the corrective second wave. Currently, it seems that we are in the midst of the third wave — which, as stated in the tweet, could reach 75,000 satoshis if it reaches a successful close above the current resistance area. Besides the reasons outlined in the long-term article, one other reason why we think this was the beginning of a new market cycle comes from the daily moving averages (MAs). The Ethereum Classic price has moved above both the 100- and 200-hour MAs. We would not be surprised if it retraced slightly, in order to find support above the 200-hour MA and the previous resistance level — which it would flip as support. In the short-term, the ETC price is following an ascending support line, which coincides with the support area outlined. Also, the bearish divergence inside the resistance area supports a price decrease. Therefore, we expect to see a price decrease towards the ascending support line before resuming its upward trend. To conclude, the ETC price has likely begun an upward move. After a small retracement, we expect it to reach 75,000 satoshis.