NEW DELHI (CoinChapter.com) — Ethereum Classic (ETC) has been on a bull run since Jan. 8, which has helped ETC price paint a 76.25% spike from Jan. 8’s low near $18.39.
The blockchain platform, a hard fork of the Ethereum blockchain, has a significant upgrade known as “Spiral” lined up for a Jan. 31 launch, which could be pushing the token’s price higher.
The upgrade would align Ethereum Classic with the Ethereum mainnet, ensuring Ethereum Virtual Machine (EVM) compatibility. Moreover, the upgrade would streamline contract development and migration, bringing the ETC network in line with upstream EVM standards.
Etheruem Classic’s Spiral upgrade would help enhance its compatibility and functionality, bringing it on par with its older brother, Ethereum. As such, the upgrade might help ETC price continue its bull run.
Moreover, the US Securities and Exchange Commission (SEC) approving the Bitcoin spot ETFs could be a major bullish cue for the wider crypto market. Analysts claim Bitcoin’s (BTC) price could reach $100,000 by 2024-end, riding on the increased investor exposure due to spot ETFs.
ETC price could ride the wider market euphoria to continue its bull run.
ETC Price Close To Negating A Bearish Pattern
Meanwhile, ETC price’s recent bull run has positioned it to break out above a bearish technical pattern called the ‘Descending Triangle.’
The descending triangle is a bearish continuation setup with a falling resistance line that caps upside attempts and a flat support that prevents declines. The height of the triangle’s thickest section determines the price target in a descending triangle setup.
ETC price seems poised to break out above the pattern’s descending trendline resistance following its recent bull run. However, if the triangle pattern pans out, ETC could face a drop of nearly 89% to reach the projected price target near $3.37, theoretically.
Ethereum Classic Bull Run Faces Reversal Risks
Ethereum Classic’s recent bull run pushed ETC price to levels last seen in Sept. 2022. However, bears defend the resistance zone near $32.6, rebuffing the token’s rally on Jan. 11. As a result, ETC price dropped 5.3% to a daily low near $28.8 on Jan. 12.
However, if ETC breaks and consolidates above the immediate resistance, it could target the resistance near $37 before retreating.
The RSI for ETC was overbought, with a score of 77.68 on the daily charts. Traders often view overbought RSI levels as a signal that the bullish momentum is reaching its peak, and the asset might be due for a trend reversal or corrective price pullback.
As such, the ETC price risks ending its bull run and correcting to the support near $26. Moreover, breaching the immediate support might force the Ethereum Classic token price to its 50-day EMA (purple wave) support near $21.
