Ethereum Classic Pops As Bitcoin, Ethereum Rebound — But Can The Crypto Buck This Key Trendline? – Ethereum Classic – United States Dollar ($ETC)

Ethereum Classic (CRYPTO: ETC) It was trading more than 4% higher on Wednesday in a supported bounce Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which traded up more than 2% and 4%, respectively, on Wednesday afternoon.

The cryptocurrency sector has been in turmoil since November 10 when Bitcoin and Ethereum reached all-time highs of $69,000 and $4867.81, respectively, before entering long-term downtrends. Comparatively, Ethereum Classic has been weaker than the major cryptocurrencies, unable to make any meaningful recovery on May 6, 2021, to an all-time high of $175.

Ethereum Classic could be on a larger reversal to the upside if the crypto is able to reverse the trend line that has been pressing it since November 11 and on Wednesday, Ethereum Classic was trying to break.

See also: Bitcoin, Ethereum and Dogecoin chart restored as Fed chief clears interest rates – will you buy bags of cash now?

Ethereum Classic chart: The descending trendline is likely to be a well-known pattern for algorithms and robots programmed to trade cryptocurrency because they tested the line as resistance 16 times previously and rejected it. A trendline is valid when it acts as support or resistance at least three separate times in a given time period.

On Wednesday, Ethereum Classic appeared to be printing a bullish Marubozu candle on the daily chart as it attempted to break out of the trend line. Crypto may need a larger volume to complete this task because as of late afternoon, Ethereum Classic trading volume was around 77,784 compared to the 10-day average of 96,423.

Traders can watch the volume level on lower time frames increase if Ethereum Classic breaks from the trend line although bullish momentum will be required after the breakout to help the crypto change direction. At the moment, Ethereum Classic is still trading in a confirmed downtrend with a recent low of $27.31 on Monday and the most recent high of $35.91 created on Jan 2.

Wednesday’s bullish price action caused Ethereum Classic to regain the eight-day exponential moving average (EMA) as support, which is bullish but the eight-day moving average is still heading below the 21-day moving average, which is a bearish indicator. The cryptocurrency is also trading about 17% below its 50-day simple moving average, which indicates that the long-term sentiment is bearish.

Want a live analysis? Find me in the BZ Pro lounge! Click here for a free trial.

  • Bulls want to see significant bullish volume pushing Ethereum Classic higher through the descending trend line and then the cryptocurrency to emerge above the 21 day EMA and make a higher top. There is resistance above $32.17 and $36.82.
  • Bears want to see Ethereum Classic continue rejecting the trend line and push the cryptocurrency further lower until it loses support at 27.67, which could cause Ethereum Classic to print another lower low. Below the level, there is support at $20.45 and $15.27.

Photo by Myriam Zels on Unsplash