A few days ago, we said that shorting Ethereum Classic would be a huge risk, due to a possible Coinbase driven reversal, and it has come to pass. Yesterday Coinbase made the announcement, and as expected, there was a huge pump in the price of Ethereum Classic (ETC). Within a few hours, Ethereum Classic was up by over 16%, squeezing all those who went short earlier in the week.
Looking at the charts, Ethereum Classic (ETC) looks set to continue pushing higher and is likely to break above $20 in coming days. In the weekly charts, Ethereum Classic (ETC) has rejected the 100-day moving average support level, and is now trading at last week’s high of $16.92. That’s a clear sign that bulls are now in control of the Ethereum Classic market. As volumes continue to rise heading towards next week’s official listing announcement, Ethereum Classic is likely to break the 55-day moving average resistance level at $19.30 and test higher highs.
A glance at the day charts shows that it will most likely be an all green weekend for Ethereum Classic (ETC). That’s because yesterday’s long green candle saw it push above the 55-day moving average at $15.99, and is now is trading in a narrow range between the 55-day moving average and the 100-day. This goes to show that after the huge pump that saw it rise 16% yesterday, some level of profit taking is happening at the moment.
As such, Ethereum Classic will likely consolidate in between $16 and $17.1 for the next few days. Then when Coinbase makes things official, possibly on Tuesday, buying momentum could push it above $17.1, with the next key resistance level being at $20, along the 200-day moving average.
Intra-day trades confirm that Ethereum Classic is now entering a bullish consolidation phase. It is trading between the 100-day and the 200-day moving averages, but in a high volume environment, which confirms the day charts picture of some profit taking, but in an overall bullish environment. Once the price breaks above the 200-day moving average, the bull trend continuation will be confirmed.
From a fundamentals perspective, Ethereum Classic is likely to continue rising higher, even after the Coinbase listing. That’s because it has a strong roadmap going into 2019. For instance, they are working on Sharding, which will give it over 1000 transactions per second. They are also implementing sidechains, which will give it a huge leg up in the fast expanding IoT space. Besides, there is increased positive sentiment around Bitcoin (BTC), and this will reflect in the value of the entire market, especially for strong altcoins such as Ethereum Classic (ETC).
Going by this confluence of technicals and fundamentals, Ethereum Classic makes for a great investment in 2018, all the way into 2019. In a market wide bull run, Ethereum Classic (ETC) could grow to over $50, or higher. Very few cryptos are as fundamentally strong as Ethereum Classic (ETC) at this point in time.