Ethereum Classic (ETC) token flashes conflicting technicals after a 6% uptrend

Ethereum Classic (ETC) token flashes conflicting technicals after a 6% uptrend
image from medium.com

Key ETC token Takeaways:

  • Ethereum Classic faced bearish technical indicators on the four-hour chart, hinting at a looming decline.
  • However, the weekly chart could ensure a bullish month ahead, despite the short-term setback.
  • ETC token adoption grew to encorporate over a thousand companies.

YEREVAN (CoinChapter.com) – Ethereum Classic token registered a 6% uptrend in the previous 24 hours. ETC price stood at $32.6 in Tuesday’s New York session, while the technical analysis detected a possible short-term setback. ETC token formed a Head and Shoulders pattern on the four-hour chart, which could mean a 12-13% drop in the upcoming sessions.

In detail, the Head and Shoulders consists of three consecutive tops, with the middle one (the Head) higher than the remaining two. The tops are also connected at the base, dubbed the Neckline. As of publication, the Ethereum Classic token was close to forming the second Shoulder. Therefore, if the price action drops back to the Neckline confirming the setup, a further decline would likely follow.

Ethereum Classic (ETC) formed a Head and Shoulders pattern on the 4hr chart.
Ethereum Classic (ETC) formed a Head and Shoulders pattern on the 4hr chart. Source: ETCUSDT on TradingView.com

Also read: Joe Rogan-cryptocurrency industry could be the key to a decentralized future.

ETC Price Flashed Bullish Weekly Chart

Despite the bearish low time frame prognosis, the ETC token flashed hopeful technicals on the weekly chart. The digital asset formed a Falling Wedge, a bullish reversal pattern. It consists of two converging trendlines that take the value down while lowering the price swing.

After ETC exhausts the pattern, it will likely break the resistance trendline and adopt a bullish bias. Hence, the described scenario would mean at least a 20% uptrend for the token before reaching the said trendline.

Moreover, in the previous week, the digital asset faced a confluence of support. ETC token retested the Wedge’s lower trendline, bounced off the $29.0 support, and the third significant assistance trendline, which has been relevant since late 2020.

Ethereum Classic (ETC) in a Falling Wedge
Ethereum Classic (ETC) in a Falling Wedge. Source: ETCUSDT on TradingView.com

Also read: 4 Bitcoin indicators that show why BTC price won’t go back to $69K in 2022

The four-hour chart’s short-term bearish forecast does not contradict the weekly chart’s bullish outlook. However, the token’s future mostly depends on the fundamental developments on the platform.

What’s new with Ethereum Classic?

Born out of an ideological rift with the leading smart contracts platform Ethereum, the blockchain reminded its followers of the wide adoption ETC enjoyed over the years. According to a recent tweet, the number of companies accepting Ethereum Classic as payment grew to 1,000.

The list includes shops and markets, internet services companies, gaming, gambling, and crypto services.

The ‘ETC army’ held a Community Call on Jan 18, 14:00 UTC. Cody Burns, the board director, also joined the discussion, intending to answer any questions the community left on the Discord Server.

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