- Ethereum Classic price is forming a bottom, suggesting a trend reversal is likely.
- A resurgence of buyers might propel ETC to climb 23% and retest $61.58.
- If the selling pressure breaches $43.93, it will invalidate the bullish thesis.
Ethereum Classic price experienced a run-up between July 20 and July 26. However, due to the exhaustion of bullish momentum, ETC faltered and set up two lower highs since July 26. While this could be a bearish sign, a look at the bigger picture reveals that it is a consolidation that might lead to more gains in the near future.
Ethereum Classic price nears inflection point
Ethereum Classic price rallied roughly 48% from July 20 to July 26 but failed to continue the rally going forward. This exhaustion led to the formation of lower highs, which might indicate a bearish outlook.
However, considering the ETC price action after July 26, it shows that consolidation is in the works. Investors can expect the Ethereum Classic price to either rally from its current position or retest the support level at $46.52.
The resulting uptrend will encounter $51.48, $55.58, and $58.86 resistance levels before coming face-to-face with the trading range’s mid-point at $61.58. A retest of $61.58 would indicate a 23% upswing from the current position, $49.84.
ETC/USDT 6-hour chart
On the other hand, if the selling pressure builds up at the retest of the $46.52 support level, it might shatter, paving the way for further downside. A breakdown of the $43.93 demand barrier will invalidate the bullish thesis.
Such a move might trigger panic among buyers who might potentially sell, pushing ETC down to retest the range low at $39.68.