What Is Ethereum Classic?
Ethereum Classic is the original Ethereum chain. Ethereum was split in a hardfork on 30th February 2015 into Ethereum Classic that continued as it was and Ethereum that was a fork from the original chain before the 1,900,000 block, in which theft of funds from Ethereum DAO members was realized. On the forked chain, the wallets’ balances were restored to the state as they were before the hack, and on the Ethereum Classic chain, the users’ funds were stolen.
In this Ethereum Classic price prediction we are going to look back at the recent price action of Ethereum Classic and produce a mid-term price prediction for the second half of 2021. For this price prediction, we are going to use the pricing data of the cryptocurrency exchange Kraken.
Retrospective Analysis of Ethereum Classic Price
Being in the shadow of Ethereum, Ethereum classic did not show any whatsoever notable bullish price action during the entire bull run of the cryptocurrency market of 2020 and early 2021.
The first signs of a budding bullish market in Ethereum Classic became observable on 9 February 2021, with the ETC/USD price attempting and completing a takeover of the weekly price level at 9.577. The ascent continued onto 13th February, with a big spike taking place on the day and sending the price up past the 13.4 weekly resistance level.
ETC/USD on a daily-timeframe chart
However, a big portion of that progress was lost between 22nd and 23rd February when the price slipped below the weekly level and finished off a notch above the 11.111 daily support level on 23rd February.
Another push at the 9.577 weekly level was attempted on 13th March, which was retraced down on the following day after a seeming stabilisation above the weekly level. 11.111 was the resting ground for the trading pair once again, with the pair neatly landing on it on 25th March. This second time around, the level turned out to be a starting point for the upcoming giant leap.
The start of the bullish wave in ETC/USD in April – March 2021
The price rose above 13.4 on 31st March and turned the resistance into support on 3rd April. Following that event, ETC/USD continued moving higher, having next to no resistance on the way. The daily 33.7 resistance level had some delayed effect on the price: after the breakthrough above the level on 16th April and a high of 49.91 on 17th April, the pair quickly dropped down to the 33.7 daily level on 19th April.
After a few days of sideways fluctuations, a new wave of bullish price action began on 1st May, with the Ethereum Classic pump reaching its peak at 176.72 on 6th May. Such a massive Ethereum Classic growth could be triggered by the fast growth of Ethereum, which at the time was going past the $3,000 barrier and swiftly moving towards $4,000, the rise in retail interest, and possibly Robinhood traders.
ETC/USD rising to its ATH and a bearish reversal taking place afterwards
After the swift multifold price surge, a quick bearish reversal took place in ETC/USD against the backdrop of a big dump on the cryptocurrency market, largely copying the pump-and-dump scenario of Dogecoin earlier in the year. The falling stopped at the 0.236 Fibonacci retracement level at $50.2, with the 50-day SMA seemingly playing its role in the modest rebound.
Ethereum Classic Price Prediction for 2021
The recent correction on the cryptocurrency market presents very good buying opportunities for many assets across the board. Therefore, we are going to look at lucrative buying opportunities for Ethereum Classic in the medium term.
Having the recent price action stretching well above the current price levels, we have quite a lot of space to the current all-time-high of ETC/USD to set a mid-term price target within this space. The Fibonacci retracement offers a good potential target at 141, the 0.618 level at 114.48 is another good target.
Speaking of the entry-level of a possible buying order, the 33.7 daily level would be an ideal level to buy at. However, the price might not get there before the next big bullish move. So, the 0.236 Fibonacci level at 50.2 could be another good entry-level for a long position in ETC/USD.
Another possible way to determine an entry-level for a long ETC/USD position can be a trend ray, which seems to have been working for the pair since the beginning of the rising move in April.
Trend ray in ETC/USD, the daily timeframe
You can see on the chart above how it has been supporting the pair twice and gaining motive force since April 2021. You can draw a similar ray on your chart to see when the right time comes to place a buying order.
The content of this article is for informational purposes only and should not be construed as investment advice. We ask you to do your research.
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