-
Ethereum Classic rose by 5% on Monday to extend the gains made in the week
-
The network has witnessed a rise in transactions volumes
-
ETC’s price target lies at $26, but correction could occur
The price of Ethereum Classic (ETC/USD) is looking up again after a disastrous 2022. Trading at $21.14, the cryptocurrency has confirmed a trend reversal after a break below a descending trendline. This does not outrightly tell whether we are in a bullish market since ETC has occasionally been a volatile token. However, buyers would be delighted that the upside could continue meanwhile, as the latest price action shows.
The latest Coinjournal analysis showed that miner activity gained momentum on Ethereum Classic towards the start of 2023. The last week has also seen transactions on the network embark on an upside. That coincided with the price surge that continues to be witnessed. On Monday, the price rose by more than 5%, as most cryptocurrencies looked up. Bitcoin and Ethereum, the two leading digital assets, had added 1.93% and 4.58%, respectively.
Ethereum Classic price outlook as the price recovers
From the daily chart outlook, Ethereum Classic has witnessed intensified buying at the $19 bottom. The buying is evidenced by the uptick in RSI from the oversold region to an almost overbought level. The cryptocurrency also recovered above the $1.5 resistance, which could become the reference support. A breakout at the descending trendline also reinforces a bullish bias.
ETC potential price action
We predict that Ethereum Classic will maintain the upside to the next potential resistance at $26. However, applying the Bollinger Bands to the daily chart, we see the cryptocurrency trades at the upper limit. Looking at the prior price action, Ethereum Classic has always trended lower each time it hit the upper limit of the Bollinger Bands. Thus, a correction could occur before the price proceeds to the target.
Another indication of a possible correction is the RSI. With a reading of 68, we are entering overbought levels for ETC. Investors should be cautious before buying ETC based on those technical indicators. Buying on a retracement is recommended.