Ethereum Classic price is set to print a subtle hammer at the bottom of the downtrend.
The volume profile shows a persistent tapered look amidst the downtrend.
Invalidation of the bullish reversal thesis is a breach at $24.90.
Ethereum classic could make a surprise move to the upside if market conditions persist.
Ethereum Classic price has potential
Ethereum Classic could see a spike to the upside. At the time of writing, the bulls are attempting to regain the support of the 8-day exponential moving average (EMA) but have not yet succeeded. Despite the rejection, the volume profile indicator shows a consistent tapered look during the current downturn, which suggests the trend may be weakening.
Ethereum Classic currently auctions at $27.65. The Relative Strength Index’s reading is the most confounding evidence supporting the potential for a bullish reversal. On the 2-day chart, while a hammer is minutes away from being formed, a subtle bullish divergence is displayed. More importantly, the divergence is at the precise level where corrections must choose between a reversal or a continuation to the downside.
ETC USDT 2-Day Chart
Combining these factors, an Ethereum Classic pump should not be ruled off the table. Early confirmation of the trend reversal could occur if the bulls hurdle the 8-day EMA at $28.33. In doing so, the bulls could re-route, targeting the 21-day Simple Moving Average at $32.25. Such a move would result in a 17% increase from the current ETC price.
If the bears continue to reign, a 18% nose dive into the previous $23 congestion zone will likely occur. The failure to hurdle the 8-day EMA provokes this scenario.
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