Ethereum Classic (ETC) was a surprise star during this cryptocurrency bull market and was sometimes the top performing coin on the market in terms of price movement. After struggling to compete with its older cousin Ethereum (ETH), could Ethereum Classic make more headlines in June as Ethereum 2.0 looms on the horizon for the time being?
Ethereum Classic Prize in 2020 and 2021
As many probably know, the crypto sector has grown almost consistently over the past year since prices slumped in March 2020 on COVID-19 fears. As the spread of the global pandemic affected the stock market and traditional finance, the correlation initially also caused cryptocurrencies to decline.
Ethereum Classic didn’t exactly follow this path. Instead, it was pretty stable for over two years. Between January 2019 and February 2021, there was only one significant price movement, which happened in January 2020 when it rose from $ 4.5 to $ 12 and then rose back to $ 5 by March 15, 2020, as COVID-19 fears knocked them down again.
That being said, the coin mostly fluctuated between $ 5 and $ 7 before and after this brief spike. ETC finally participated in the crypto bull run in February 2021 and first encountered resistance at $ 17 around February 14, which held it through April. In April it rose again, this time to $ 47 before being turned back to $ 30.
Finally, around the beginning of May, the coin really skyrocketed, reaching nearly $ 160 by May 6. After that, the price began to see another correction that caused a market-wide price crash, causing ETC to drop further to $ 45. From there it recovered a little, hitting $ 80 before settling at just under $ 70, where it is now.
Ethereum Classic Price Prediction
Since crashing from its all-time high in June, ETC has entered a fairly consistent trading range, finding support from a persistently lower trendline ahead of its May rally and encountering descending resistance from above. There is a symmetrical triangle pattern (4 hour chart) at play here and ETC will be nearing the end of that range in June.
This “squeeze” will force ETC to break out, but wisdom dictates that the symmetrical triangle pattern is directional: that is, the price is just as likely to break out upwards as downwards. Traders may be forced to research the technical performance of the rest of the market for clues.
The first thing to note is that while ETC joined the party fairly late, it has followed the lead of Bitcoin and Ethereum pretty closely since then. It shot up as the other two gathered, and there was a crash as they went forward.
With that in mind, it is possible that this could simply happen in days, weeks, and maybe even months. Even so, ETC remained relatively unaffected by the rest of the crypto industry for all of 2020 and the first month of 2021. It then rallied in line with the broader market, but at its own pace.
There is also a clear parallel between the current consistent trading range and the range experienced for most of 2020 (between $ 5 and $ 7). If the coin holds in this range a little longer, it could be a sign that a similar rally could begin with a bullish breakout. An analyst on Twitter certainly thinks so.
– FORKLIFTZ $ ETC $ XRP (@QtheFORKLIFTZ) June 6, 2021
All in all, a bullish breakout in June could cause ETC to return to a price range around $ 80 where it previously settled during the first crash of the most recent crash. A full resumption of the crypto bull run in 2021 could result in Ethereum Classic rising above 100 USD again – the market has shown a “double top” structure in the past, with new all-time highs being set after a period of consolidation. In that case, even a $ 200 target by the end of the year isn’t out of the question.
Of course, if the market continues down, ETC will follow suit, but investors should remember from earlier this year that Ethereum’s younger brother has the spirit of an underdog and is very capable of surprising the market when it least expects it becomes.
Please note that the details given above are solely a personal opinion of the author, which is derived from the relevant market data. None of this is to be understood as direct investment advice.