Ethereum Classic May Need To Cross Above A Key Level

Ethereum Classic ETC/USD shares are trading slightly higher Friday and look to have fallen below a key support level. The crypto trades down in a market seeing a majority of down currencies. Ethereum Classic may need to cross above this key support level again soon or the crypto may be subject to more downward movements in the future.

Ethereum Classic was up 1.66% at $37.44 Friday afternoon at publication.

See Related: Ethereum Classic Cracks Below Support: Where's It Headed Next?

Ethereum Classic Daily Chart Analysis

• Ethereum Classic saw a break of the higher low trendline it was forming and later saw a steep drop to the $40 support level. Now, the crypto has dropped below this level and could start to hold it as an area of resistance.
• The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue). This shows the crypto is trading with bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been falling for the past couple of months and now sits at 29. This shows that the RSI has moved into the oversold region and the crypto is seeing much more selling pressure than it is buying pressure.

What’s Next For Ethereum Classic?

After breaking the higher low trendline, Ethereum Classic showed it couldn’t make any higher lows, which is a bearish sign. Shortly after the price fell to the $40 support and is hanging near this area now. Bulls are looking to see the crypto be able to reclaim this support level and trade above it once again. Bulls also want to see the price cross back above the moving averages to bring bullish sentiment again. Bears are in control of the crypto at the moment and are looking to see it begin to hold the $40 level as an area of resistance for possible further bearish moves in the future.

Photo by Thomas Serer on Unsplash