The Ethereum Classic chart annotated in this analysis is a 4hr timeframe chart with the main goal of identifying a possible trading bias for Ethereum Classic.
It is common for smaller chart patterns to nest inside bigger chart patterns and an example of a complex Head and shoulders top is shown on the chart with the neckline drawn with dotted black lines. This pattern can be found inside of a much bigger chart pattern, which is of particular interest in this analysis.
The pattern being considered in this case is the inverted, complex Head and shoulder pattern (or complex head and shoulder bottom) that is currently confirmed at ~$15.26.
The implication of this pattern is that it is favorable to buy Ethereum classic. A vertical projection of the width of the Head of the pattern is used above the break out point to calculate a possible termination point for the bullish move is ~$20.38. The point of invalidation (POI) is a price close below ~$12.38.
Although the chart pattern does indicate a possible move to $20.38, the risk to reward in this case is not favorable, which means it is best to wait for a better opportunity to enter a long position in Ethereum Classic if trading and/or entering a long position based on the bullish chart pattern alone.
For information on current chart patterns in Ripple (XRPUSD), click here.
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