Ethereum Classic Holds Gains Along With Bitcoin, Ethereum As General Markets Fall Into Turmoil

Ethereum Classic ETC/USD was holding onto much of its recent gains, along with the overall cryptocurrency market on Wednesday, despite large stock-based ETFs such as the SPDR S&P 500 ETF Trust SPY and Nasdaq Inc NDAQ, falling during the afternoon.

Many of the smaller altcoins have lagged apex cryptos Bitcoin BTC/USD and Ethereum ETH/USD over recent weeks, but on Tuesday Ethereum Classic finally broke through a resistance level at $60.89 that had been holding it down since the Sept. 7 crypto flash crash.

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The Ethereum Classic Chart: On Wednesday, Ethereum classic attempted to surpass Tuesday’s $65.33 high-of-day but was rejected just below the level. The rejection caused Ethereum Classic to print an inside bar toward the top of Tuesday’s mother candlestick. In this case, the pattern is considered bullish because the crypto was trading in an uptrend previously to the inside bar being formed.

Ethereum Classic's uptrend began on Oct. 27 when it hit a low of $43.15. Since that date, Ethereum Classic has made a fairly consistent series of higher highs and higher lows on the daily chart. Ethereum Classic’s most recent higher high was created on Tuesday and the crypto will now need to print a higher low to continue the trend.

It is also possible Ethereum Classic may consolidate for a few more days and set up either a double or triple inside bar pattern or a bull flag pattern. However, the 24-hour candle, with the long upper wick, indicates lower prices may come on Thursday, which makes a higher low more likely. Both bullish and bearish traders can watch for a break of the inside bar pattern to gauge the future direction.

Lower prices, or further consolidation in a sideways pattern, is needed to cool off Ethereum Classic’s relative strength index (RSI), which was registering in at 66% on Tuesday. When a stock or crypto’s RSI nears or reaches the 70% level it becomes overbought, which can be a sell signal for technical traders.

Ethereum Classic is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The crypto is also trading above the 50-day simple moving average, which indicates longer-term sentiment is bullish.

• Bulls want to see further consolidation and then for big bullish volume to come in and drive Ethereum Classic up above the $65.33 level for confirmation the uptrend is still intact. The crypto has resistance above at $60.89 and $65.10.
• Bears want to see big bearish volume come in and drop Ethereum Classic down below the $55.74 level, which could put the crypto in danger of losing the uptrend. Ethereum Classic has support below the level at $50.55 and $44.66.

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Photo: ETC, Public domain via Flickr