Ethereum Classic comes across as Bitcoin, Ethereum rebound – but can crypto reverse this key trendline? – Ethereum Classic – United States dollar ($ ETC)

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Ethereum Classic (CRYPTO: ETC) traded over 4% higher on Wednesday in a relief rebound powered by Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which traded over 2% and 4% , respectively, on Wednesday afternoon.

The cryptocurrency industry has been in turmoil since November 10, when Bitcoin and Ethereum hit new all-time highs of $ 69,000 and $ 4,867.81 respectively, before entering a long-term downtrend. Comparatively, Ethereum Classic has been weaker than the cryptocurrencies at the top, unable to recover significantly towards its May 6, 2021, an all-time high of $ 175.

Ethereum Classic could experience a larger reversal to the upside if the crypto is able to reverse a trendline that has been holding it since November 11 and on Wednesday the Ethereum Classic was attempting to break out.

See Also: Bitcoin, Ethereum, Dogecoin Charts Fetch As Fed Chairman Clears Air On Interest Rates – Will Pending Money Bags Now Buy Down?

The Classic Ethereum Chart: The descending trendline is most likely a recognized pattern for algorithms and bots programmed to trade crypto, as it has tested the line as resistance 16 times before and rejected. A trendline is considered valid when it acts as support or resistance at least three times in a given time period.

On Wednesday, Ethereum Classic appeared to be printing a bullish Marubozu candlestick on the daily chart while trying to break the trendline. Crypto may need higher volume to accomplish this task because as of late afternoon Ethereum Classic’s trading volume stood at around 77,784 compared to the 10-day average of 96,423. .

Traders can watch the volume level increase over shorter time frames if Ethereum Classic breaks away from the trendline, although bullish momentum is needed after the breakout to help the crypto change its trend. Currently, Ethereum Classic is still trading in a confirmed downtrend with the lowest low printed on Monday at $ 27.31 and the most recent low created at $ 35.91 on January 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 EMA is still below the 21-day EMA, which is a bearish indicator. The crypto is also trading around 17% below the 50-day simple moving average, indicating that long-term sentiment is bearish.

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Bulls want to see big bullish volume push Ethereum Classic up through the downtrend line, and then the crypto surge above the 21-day EMA and hit a higher high. There is resistance above at $ 32.17 and $ 36.82. The bears want Ethereum Classic to continue to reject the trendline and push crypto lower until it loses support at 27.67 which would cause Ethereum Classic to post another lower low. Below the level there is support at $ 20.45 and $ 15.27.

Photo by Myriam Zilles on Unsplash

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