Ethereum Classic Slides Back Towards Support: Is A Bounce In The Works?

Ethereum Classic ETC/USD traded lower Wednesday in a mixed bag of a crypto market. Ethereum Classic looks like it is sliding back toward support where it may be able to make a bounce in the coming days.

Ethereum Classic was down 2.30% at $44.83 at last check Wednesday afternoon.

Ethereum Classic Daily Chart Analysis

• The past few weeks Ethereum classic has been falling and nears support in what technical traders call a sideways channel.
• The $80 level is a place where Ethereum Classic has struggled to cross above in the past and may continue to hold as resistance in the future. The $40 mark is an area where the crypto has found support before in the past and somewhere it could see a bounce in the near future.
• The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating recent sentiment has turned bearish.
• These moving averages may both hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been falling the past few weeks and now looks to be flattening out near 33 on the indicator. The RSI nears the border of the oversold area starting at 30, this is where the crypto will see much more selling pressure than buying pressure.

What’s Next For Ethereum Classic?

Bullish traders are looking to see Ethereum Classic bounce at the $40 support level and begin to form higher lows up toward resistance. Bulls would then like to see a break of resistance following with a possible strong bullish move.

Bearish traders would like to see the crypto continue to fade lower and eventually fall below the support level. If the support level could start to hold as resistance, then the stock may see a strong bearish push.

Photo: Ethereum Classic Wallpaper - Matrix (public domain) via Flickr