In our May 23 analysis of Ethereum (ETH) and Ethereum Classic (ETC), we noted that both had broken from their short-term trading patterns. On May 25, however, we observed that ETH was moving in a longer-term horizontal channel. At that time, the price was heading toward the resistance line.
Since that time, both ETH and ETC have broken out of their respective trading patterns. Based on these recent gains, we return to our May 23 predictions and assess their accuracy. Furthermore, we attempt to predict where the price of each asset will head next.
Ethereum: Breakouts and A Double Top
Between May 17 and 27, ETH/USD was trading within a symmetrical triangle. On May 26, the price declined slightly before spiking.
The spike at the end of the day caused a breakout. At the time of writing on May 27, ETH was still trading well above the resistance line:
Since the breakout, the highs on May 16 and 26 may have generated a double top pattern. The possible tops are illustrated are identified by the black arrows in the graph below.
There we can see that each of these highs reached a resistance area created by lows experienced on in August and September 2018. 
Furthermore, between Jan 10 and May 14, the price was trading inside an ascending channel. It broke out on May 14 and subsequently generated the horizontal channel for May 17-26.
Combined with the bearish divergence in the RSI, it appears likely that the price will soon drop from the resistance area. It is not clear whether or not the price will return to the ascending channel or generate a new trading pattern.
Etherum Classic: Descending Wedge Breakout
Between May 16 and 26, ETC/USD was trading within a descending wedge. On May 26, the price broke out of the wedge. This occurred at roughly the same time as Ethereum’s breakout.
Furthermore, neither ETH nor ETC have experienced significant drops from recent highs observed at the time of writing.
Unlike ETH, however, ETC has not been trading in a similar long-term pattern. Nonetheless, ETC has been trading above an ascending support line since Mar 18.
The short-term wedge emerged after a rise from the support which began on May 11 and ended on May 16. Prior to the breakout, it appeared as if ETC might continue dropping toward the support line.
While the current rises may continue, it appears more likely that price will drop in the near future. This is based on the appearance of both long- and short-term bearish divergence in the RSI, past long-term divergence in the MACD, the possible double top pattern that developed from the highs on Apr 7 and May 16, and a possible short-term triple top.
The use of these indicators suggests that the price will decrease towards the ascending support line.
Conclusion
In the short term, ETH broke out from a symmetrical triangle while ETC broke out from a descending wedge.
ETH has reached a significant resistance area and created a double top pattern. This is combined with a significant bearish divergence in the RSI.
Similarly, ETC has created a double top in the long-term and a possible triple top in the short-term. These movements have been combined with bearish divergence in both the RSI and the MACD.
Therefore, we believe that both ETH and ETC will decrease in the near future.
A summary is presented in the table below:
| ETH | ETC | Winner |
| Symmetrical Triangle Breakout | Descending Wedge Breakout | Tie |
| Double Top With Bearish Divergence | Triple Top With Bearish Divergence | Tie |
Do you think the price of ETC will begin to reverse? What about ETH? Let us know in the comments below! Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
