The Ethereum Classic Price has been grinding sideways in a tight trading range for the last week. This may be signaling a coming breakout.
ETC has been quiet, almost too quiet. Since the crypto markets’ huge flush out last month, The Ethereum classic price has traded between $39.50 and $83.00.
However, over the last week, a smaller range has been formed. Since the early hours of the 28th of May, ETC has been pinned between $60.30 and $72.30.
Weekly trading ranges of 20% are normal, volatile even, for traditional assets. But this is crypto, and my feeling is, this tight range may shortly come to an end.
This presents an opportunity to trade when the Ethereum classic price finally breaks out.
ETC Technical outlook
During the May 19th sell-off, ETC traded as low as $39.62. Although the price initially bounced to $80.20, four days later, it was back to $40.00.
ETC then raced higher to $83.00. For two consecutive days, the price failed to clear $83.00. This established the broad trading range.
Therefore, we have two clear lines of horizontal resistance above the market. The same can be said of support below the price.
If ETC breaks below the support at $60.30, it should then target the bottom end of the longer-term trading range at $39.62. This creates a selling opportunity below $60.30. However, sellers should place a tight stop to protect against a false break.
Alternatively, if ETC clears the resistance at $72.30, the next stop should be $83.20. Therefore longs could add on a break of $72.30, again with a tight stop.
Which of these happens first will depend on the overall health of the cryptocurrency market.
This offers a low-risk, high-reward strategy to catch momentum if the price springs back to life.