Ethereum Classic Couldn't Reclaim Support: Is It Due For A Drop?

Ethereum Classic ETC/USD is trading lower Thursday, as the crypto market as a whole is seeing a red day. Ethereum Classic recently fell below the support level and has started to hold it as a resistance level.

Ethereum Classic was down 0.47% at $31.65 at last check Thursday afternoon.

See Related: Can Ethereum Classic Break From This Key Pattern To Make 2022 Bull Run A Reality?

Ethereum Classic Daily Chart Analysis

• Ethereum Classic has fallen below the $40 support level and was unable to cross back above when it attempted to reclaim the support level. This level may hold as resistance now along with the $60 level.
• The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the crypto is seeing recent bearish sentiment. Each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been falling lower the past few weeks and now sits at 30. This sits on the border of the oversold region and is showing the buying pressure is heavily outweighed by the selling pressure.

What’s Next For Ethereum Classic?

Ethereum Classic falling below the $40 support level and now holding it as an area of resistance is a bearish sign for the cryptocurrency. If the crypto can hold below the $40 resistance level and the moving averages, it may continue to drop lower. This is what bears are looking to see as the price continues to fall lower. Bulls are looking for a rebound and the price to cross back above the $40 level while making higher lows.