Is Ethereum Classic The Laggard Play To Bitcoin? Here's What The Chart Says

Ethereum Classic ETC/USD was trading slightly lower Tuesday in sympathy with sector leader Bitcoin BTC/USD. Unlike Bitcoin, Ethereum Classic has so far failed to erase its Sept. 7 losses caused by a flash crash the day El Salvador adopted Bitcoin as legal tender.

The alt-coin may need more time to consolidate on the daily chart but has set itself into a bullish pattern that could propel Ethereum Classic higher.

See Also: Ethereum vs Ethereum Classic

The Ethereum Classic Chart: On Oct. 1 Ethereum Classic broke up bullishly from a descending trendline that had been holding it down since Sept. 8. Since the break, Ethereum Classic has failed to make a move higher and has been consolidating mostly sideways between a support level at $50.93 and resistance at $55.12.

The crypto has tested the $50.93 level on four separate occasions and bounced, which has created a bullish quadruple bottom pattern. If the pattern is recognized, Ethereum Classic may trend higher and break up through the resistance above.

On Tuesday, Ethereum Classic was working to print a bullish hammer candlestick. The pattern is found at the bottom of a downtrend and can indicate a reversal is in the cards. Higher prices on Wednesday will be needed to confirm if the candle pattern was recognized.

Ethereum Classic is trading slightly below the eight-day and 21-day exponential moving averages (EMAs), but with the eight-day EMA trending above the 21-day, which indicates bearish indecision. The crypto is also trading below the 200-day simple moving average, which indicates an overall bearish sentiment. On Tuesday, the crypto attempted to break above all three moving averages but was rejected and wicked from the levels.

• Bulls want to see big bullish volume come in and drive Ethereum Classic up above the moving averages and through resistance at the $55.12 mark. If the crypto can regain the levels as support it has room to make its way back up toward $60 zone.
• Bears want to see big bearish volume drop Ethereum Classic down under $50.93 to negate the quadruple bottom pattern and confirm a new downtrend is in play. Under the level the crypto has further support at $44.66 and $40.57.

Photo: Matrix (public domain) via Flickr