classic Ethereum [ETC] Widening Consolidation: A bullish breakout is likely

Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.

• At press time, the market is neutral on the 12-hour chart.
• Funding Rate and Sentiment Weighted were negative at the time of writing.

classically ethereal [ETC] It has been in a consolidation phase since mid-March. The price action has reached the home straight in its symmetrical triangle pattern at press time, suggesting a possible breakout.

Read Ethereum Classic [ETC] Price prediction 2023-24

At the time of writing, ETC was valued at $20.03, a 0.2% change over the past 24 hours. On the other hand, bitcoin [BTC] it worked below the recent high of $28,000.

A rally to $28,000 could lead the bulls to stage a bullish breakout. However, a drop below $27,000 could tempt the bears to sink ETC below the symmetrical triangle pattern.

Is a patterned break likely?

Source: ETC/USDT on TradingView

For the past few days, ETC has been bouncing between the 50 EMA and the 200 EMA, testing the boundaries of the symmetrical triangle pattern for excessive spikes or dips.

At press time, price action is nearing the top of the triangle and could cause a breakout. Symmetrical triangle formations are typically trend continuation patterns so a breakout to the upside is very likely as ETC has been on a recovery path.

As such, ETC could rally to $24.61 depending on the height of the triangle. That would be a potential increase of 18%. But the bulls need to clear the $23.79 hurdle to reach the target. $23.79 was a strong resistance in January and February.

Alternatively, the bears could gain leverage if ETC closes below the lower border of the channel. The collapse could increase selling pressure and cause ETC to slide to $16. However, the low liquidity zone of $18 could also limit the decline and it pays to be cautious.

At press time, the RSI has been fluctuating slightly above the 50 level, indicating equal buying and selling pressures. Similarly, OBV (On Balance Volume) has fluctuated above $272 million, compounding the lack of absolute leverage in the market between buyers and sellers.

Funding rates and sentiment turned negative

Source: feeling

Sentiment-weighted ETC slipped deeper into negative territory, which could worry bulls. Similarly, funding rates for the ETC/USDT pair declined, turning negative bearish sentiment in the derivatives market. The trend could push the bears to initiate the breakout.

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Nonetheless, NFT trading volumes showed a rebound on the ETC network. It rose to $11 million on March 25, down $5 million from its mid-March peak.

The increase in NFT sales volume could boost investor confidence and overall sentiment towards the native token ETC. Investors should keep an eye on the BTC price action for more optimized moves.

Source: ambcrypto.com

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