The Ethereum Classic price has recovered well from the mid-week crash. ETC has since gained +82% and is now attempting to break even higher.
Since topping out in May at $176.70, ETC has been trending lower in a descending channel.
On Tuesday, the price was attempting to break the resistance at the top end of the channel at $91.00. A day later, and it was plunging through the lower end, on the way to losing half its value.
On Wednesday’s train wreck of a trading day, the Ethereum Classic price got as low as $42.00, a decline of 76% from its May high.
The bears had run rampant on Wednesday. However, on turnaround Thursday, the bulls began to charge.
ETC staged a strong recovery yesterday. The price is now back within the descending channel and, once again, attempting to break out on the upside.
The current price of $76.36 is approaching trend line resistance at $82.00. This trend, at the upper end of the descending channel, is an important level.
Subsequently, how the Ethereum Classic price performs here will determine if the rally can continue.
A horizontal resistance line from the 5th of May is also visible at $80.06. This further reinforces the price resistance.
If ETC can clear these important levels, it may signal the start of a run back to $100. However, a failure would suggest the descending channel remains intact. This would then point to further declines.
Bears may look to short the price towards the top end of the channel and close the position if the price trades higher, through $82.00. The $60.00 mid-point of the channel would be a good area to book profits.
However, the more bearish shorts may look for an extension back to the lower end of the channel, at yesterday’s low of $42.00
On the other hand, Bulls would likely chase the Ethereum Classic price higher through $82.00, with a price target of $100.00.
Buyers playing the breakout could then place stops below $80.00 for a low-risk, high-reward trade.
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