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Ethereum Classic (ETC) Echoes BCH 2023 Rally — Analyst Eyes $55 Target
In a stunning development, Ethereum Classic (ETC) has been likened to Bitcoin Cash’s (BCH) explosive rally in 2023. According to @hbj_trades, ETC is poised to follow a similar trajectory if it breaks and holds above the $25 weekly resistance level, potentially reaching a whopping $55 target.
It appears that ETC may be repeating a pattern that BCH exhibited in 2023. At the time, BCH traded sideways for several months before breaking resistance near $100. This prompted an unprecedented rally of over 7 times its value in less than two months.
ETC’s chart now exhibits a striking similarity to this setup, with a long period of consolidation followed by a potential breakout above the key $25 level. The token has not reclaimed this mark since March 2024, and the current surge is seen as a potential breakout trigger.
Notably, ETC’s daily Relative Strength Index (RSI) has reached an overbought reading of 85.04, a condition that historically precedes breakouts. Meanwhile, weekly RSI remains above 60 and continues to rise. This combination with strong volume could indicate a major shift in market sentiment.
Furthermore, derivatives data suggests that more traders are now betting on ETC’s upside through long positions, as its funding rate has turned positive at $20.27 with a reading of 0.0093%. This echoes the BCH rally in 2023 when similar indicators pointed to a surge.
The $28-$30 range remains a crucial resistance zone that ETC must overcome if it is to confirm an upward trajectory. Any failure to do so would likely lead to increased selling pressure and potentially even further correction.
It’s worth noting that ETC often follows Ethereum (ETH) during bull trends, as it acts as a high-beta altcoin, meaning it reacts more strongly to ETH’s moves. The recent surge in ETH has led some traders to rotate into related assets like ETC.
In conclusion, @hbj_trades believes that if ETC can break and hold above the $25 level, a rally towards $55 is possible, representing a significant 124% gain from its current price of $24.54.
Source: coinchapter.com
