- Ethereum Classic price ranges between a high time frame range, extending from $14.70 to $27.73.
- The daily chart showcases a descending triangle setup, forecasting a near-30% move.
- Confirmation of an uptrend will arrive on the flip of the $15.91 hurdle into a support floor.
- On the contrary, a breakdown of the $14.70 support floor could trigger a 30% correction to $10.36.
Ethereum Classic (ETC) price has been bouncing off a key support level since December 2022 and currently trades around it. The ongoing consolidation will provide a good risk-to-reward ratio for traders as it forecasts a near-30% breakout move.
Ethereum Classic price prepares for volatility
Ethereum Classic (ETC) price has bounced off the $14.70 support level five times since December 2022. The last four bounces, aka swing lows, were followed by a string of lower highs. Connecting these swing points using trend lines reveals a descending triangle setup.
While this technical formation has a bearish bias, investors cannot ignore the possibility of an upward breakout. Regardless of the breakout direction, the target for the descending triangle is obtained by measuring the distance between the first swing high and the swing low to the breakout point.
Considering the Relative Strength Index’s (RSI) position above the 50 level on the daily timeframe, the chances of an upward breakout are high. Additionally, the weekend rally has pushed many investors to believe that the bull run is here.
With these points in mind, a decisive daily candlestick close above $15.91 will confirm a bullish breakout. Adding the 29% distance between the first swing high and swing low to the aforementioned breakout level reveals a target of $20.59.
Interestingly, the $14.70 to $27.73 range’s midpoint of $19.99 is just below the bullish target. So, Ethereum Classic price traders betting on this move should consider tapering their positions around this level.
Read more: Ethereum classic is looking for more gains
ETC/USDT 1-day chart
While the bullish outlook makes logical sense, investors need to note that this weekend rally could come undone at the start of a fresh week. In such a case, if the Ethereum Classic price produces a daily candlestick close below the $14.70 support floor, it will confirm a bearish breakout. In such a case, the measurement rule forecast a 30% correction to $10.36. But the descend might face exhaustion around $10.72, which is the three-day support last seen in February 2021.