Ethereum Classic surged above the resistance of $21.70 on Friday, indicating that the bulls are coming back.
The strong rebound has pushed the RSI into the overbought zone, suggesting a small consolidation or correction in the short term. The ETC/USDT pair could retest the breakout level of $21.70. If the price bounces strongly from $21.70, it indicates that buyers have turned the level into support. This increases the likelihood of a rally up to $27.
Conversely, a drop below $21.70 suggests that the markets have rejected the breakout. The pair could then plummet to the 20-day EMA ($18.50).
The rally faces profit-taking at $24.99, which has brought the price to the 38.2% Fibonacci retracement level of $22.92. If the price bounces from the current level, the bulls will attempt to resume the upward trend. If successful, the pair could rise to $27.
On the other hand, a breakdown and close below $22.92 could sink the pair to the critical support of $21.70. Buyers will need to firmly defend the level of $21.70 to maintain the bullish momentum. If they fail, the pair could collapse to $19.56, completing a 100% retracement of the most recent rally leg.
