ETC/USD is possibly forming a continuation chart pattern; H&S continuation. Given that the March-May trend has been upwards, I expect this consolidation to act as a continuation and resolve on the upside. The well-defined horizontal resistance stands at 7.67 levels and has been tested several times. Several tests of a chart pattern boundary confirm the validity of the pattern boundary signaling the ongoing battle between the buyers and sellers. I look for several test of chart pattern boundary before a breakout takes place.
Last one month’s consolidation has taken place above the year-long average, which I use as trend filter. Breakouts above long-term average usually confirm the existing trend. I like to see bullish breakouts that take place above the year-long average.
Breakout above 7.67 levels will confirm the 4 month-long H&S continuation chart pattern with the possible price objective standing at 9.7 levels.