Ethereum Classic Might Need To Break A Key Level Before It Sees Liftoff

Ethereum Classic ETC/USD is trading lower Monday, cooling off after having a few strong days recently. The cryptocurrency has broken the lower high trendline, which could be a signal that a reversal is starting. The crypto will need to sho it can form higher lows to confirm the reverse.

Ethereum Classic was down 3.57% at $31.34 at last check.

Ethereum Classic Daily Chart Analysis

• The crypto is starting to head back toward the key level of $40, where it once found support. Now that the crypto is trading below this price, it may hold as an area of resistance. The next area of strong resistance may be found near the $60 level.
• The crypto trades above the 50-day moving average (green) but below the 200-day moving average (blue), indicating the crypto is seeing a period of consolidation. The 50-day moving average may hold as an area of support, while the 200-day moving average may act as resistance.
• The Relative Strength Index (RSI) has been climbing the past couple of weeks, but has been falling over the past couple of days and sits at 54 now. This shows there are slightly more buyers in the market than there are sellers. If the RSI can form higher lows, the bullish trend may continue.

What’s Next For Ethereum Classic?

Ethereum Classic looks like it's forming a higher low. The cryptocurrency is in a period of consolidation after seeing a strong couple of weeks and is trying to hold above the 50-day moving average and use it as a place of support.

If the crypto can form a higher low and begin moving bullishly again it might see a break of the $40 level. Bearish traders want to see the $40 level hold as an area of resistance and for the crypto to head lower once again.