Ethereum Classic (ETC) is making waves with a bullish cup and handle formation, hinting at a possible price surge. Is this the start of something big for ETC?
Ethereum Classic (ETC) is turning heads, and for good reason! A textbook bullish cup and handle formation has emerged, sending the price soaring. Could this be the sign of even bigger gains to come?
ETC Price Breaks Out: What's Happening?
Ethereum Classic has experienced a remarkable price surge, with a 37% increase over the past week, bringing its price to $25.19. ETC shattered the multi-month cup and handle formation, marked by a neckline around $18. This breakout sent ETC from $16 to $25 in less than five sessions, backed by robust bullish candles and expanding volume. This impressive rally is fueled by a key breakout above the $21.48 resistance level and a wave of optimism across the crypto market.
The Bullish Cup and Handle: A Textbook Setup
The confirmed breakout from the cup and handle pattern has sparked aggressive buying pressure. This pattern, forming since March with accumulation near the $13–$15 range, suggests a strong foundation for further price appreciation.
On-Chain Data: Fueling the Fire
Spot capital flows confirm buyer dominance. On July 19, ETC saw a $1.69 million net inflow—the highest daily positive flow in over four months. This influx reflects renewed investor confidence after months of outflows and stagnant activity. Data from Coinglass reveals a sharp increase in ETC Futures Open Interest, which now stands at around $250 million, its highest level since November. Historically, spikes in open interest that coincide with rising prices indicate an influx of capital and an increase in leveraged long positions. It is worth noting that similar surges in open interest in March and November 2024 preceded strong bullish moves, and current levels mirror that setup.
Technical Indicators: All Systems Go?
Bollinger Bands on the daily chart are expanding, with the price riding the upper band well above the 20 SMA at $18.28. This typically signals the start of a new volatility phase. Furthermore, ETC has surpassed the 0.382 Fibonacci level on the weekly chart, opening the door to the 0.5 level at $27.31 and then $30.82.
Short-Term Outlook
Ethereum Classic price is expected to consolidate between $23.60 and $25.50 in the short term, with continued high volatility. A successful push above $25.50 could target $27.90, aligning with the Fibonacci 0.5 zone and visible supply resistance. However, failure to hold $23.00 might trigger a pullback toward $21.80 and potentially $20.50.
Potential Hurdles and Considerations
As Ethereum Classic continues to climb, market participants are closely monitoring the $26–$28 resistance level. A successful breach of this level could pave the way for further gains. The 4-hour chart shows a clear breakout above the long-standing $21.48 resistance, which has now turned into support. ETC touched a 24-hour high of $25.68, and the RSI is hovering around 77, signaling overbought conditions, but not yet diverging.
Final Thoughts: Is ETC the Real Deal?
ETC's recent surge is undeniably exciting. With solid technicals, increasing investor interest, and a bullish cup and handle formation in play, the stage seems set for further gains. However, remember that the crypto market can be a wild ride, so buckle up and do your own research before jumping in. Who knows, maybe ETC is the next big thing—or maybe it's just another flash in the pan. Either way, it's definitely one to watch!
