Ethereum Classic follows Bitcoin, decouples from Ethereum: what’s next for crypto? – Ethereum Classic – United States dollar ($ ETC)

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Ethereum Classic (CRYPTO: ETC) suffered a 23% lightning crash on Saturday in sympathy with Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which fell about 15% and 21%, respectively, over the course of the same period.

While Ethereum wiped out all losses from that day, Ethereum Classic and Bitcoin failed to rebound significantly and both settled into bearish patterns on the daily chart. There is a chance for Ethereum Classic bulls to reverse the pattern if they can gain enough control to confirm that a new trend is about to start.

See Also: As Bitcoin Struggles To Build On A Relief Rally Here Is What 5 Popular Crypto Analysts Say

The Ethereum Classic Chart: When Ethereum Classic fell on Saturday, it hit the $ 30 level, the level at which the crypto has not been traded since April. The bulls came in and bought lower and the crypto rebounded 30% from the level to close the 24 hour trading session at $ 39.44.

Since then, the crypto has traded in a narrow $ 6 range, but has risen slightly overall. The sharp drop coupled with the slight upward consolidation settled Ethereum Classic in a possible bearish flag pattern on the daily chart, with the pole created between December 1-4 and the flag starting to form on Sunday. If the crypto collapses lower from the formation of the flag, traders will want to watch the increase in volume to assess whether the pattern has been recognized.

A positive sign on the Ethereum Classic chart is that the crypto has taken the first steps to confirm that an uptrend may be underway. Ethereum Classic hit both a high above Sunday’s daily high of $ 40.83 and a low above Saturday’s daily low of $ 30.30. If the uptrend is to continue, Ethereum Classic will need to print another higher low above the December 6 day low.

Ethereum Classic is trading below the eight-day and 21-day Exponential Moving Averages (EMA) with the eight-day EMA trending below the 21-day, both of which are bearish indicators. The crypto is also trading below the 50-day simple moving average, indicating that long-term sentiment is bearish.

The bulls want to see a big bullish volume come in and push Ethereum Classic up above the eight day EMA which would cancel the bearish flag pattern. There is resistance above at $ 44.66 and $ 50.55. The bears want to see a big bearish volume come in and break the crypto from the bullish flag pattern and for momentum to drop Ethereum Classic below the support at $ 32.17. Below the level, there is additional support just above the $ 27 mark.

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Photo: public domain via Flickr

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