Ethereum Classic (ETC) is testing support at the lower boundary of a falling wedge pattern on its weekly chart, a formation often associated with potential bullish reversals. Technical analysis suggests a breakout above resistance could trigger a rally toward the $56.50 level, though the asset currently faces bearish pressure below key moving averages.
Ethereum Classic (ETC) is testing the lower boundary of a falling wedge pattern on its weekly chart. This technical structure is often linked to potential bullish reversals in cryptocurrency markets.
According to crypto analyst Butterfly, buyers are defending the support zone strongly and absorbing selling pressure. Market participants are now watching for a potential upside breakout if momentum continues building within the wedge structure.
A confirmed move above resistance could trigger a strong expansion phase. Analysts project that such a breakout could lead to a rally toward the $56.50 region.
However, the token exhibits a solid bear trend for the beginning months of 2026 as its price continues below all Exponential Moving Averages (EMAs). A swift plunge in February brought the price down to just above $7 from around $12.50.
Currently, ETC is stuck in a narrow band, facing instant resistance at the 20-day EMA while trying to turn bullish. The Bollinger Bands are compressed, indicating a volatility squeeze that suggests a strong movement may be imminent.
The asset price is currently $7.85, with support at $7.71 and the 200-day EMA located above at $12.23. Momentum indicators reinforce the bearish outlook, with the RSI at 40.29 indicating weak buying power.
The MACD indicator shows the MACD line at -0.1531 and the signal line at -0.1302. The distance between them is very small, resulting in a narrow red histogram formation on the indicator.
