Ethereum Classic (CRYPTO: ETC) is trading slightly up Tuesday, moving higher alongside the rest of a bullish crypto market.
Ethereum Classic looked ready to break out, but with a pullback in the entire market, it could not. This does not mean the crypto will not break out, it may have merely just delayed the process.
Ethereum Classic was up 0.66% at $56.09 at last check Tuesday afternoon.
Ethereum Classic Daily Chart Analysis
Ethereum Classic looks to be forming a cup pattern (orange) inside of a sideways channel. After a slight pullback, the crypto could again be on its way to a break of resistance. The $80 level is an area where has struggled to cross above in the past. This area may hold as a resistance level again in the future. Ethereum Classic has seen support near the $40 level in the past and may hold this area as an area of support again in the future. The crypto trades below the 50-day moving average (green) but above the 200-day moving average (blue), indicating the crypto is likely in a period of consolidation. The 50-day moving average may act as resistance while the 200-day moving average may be a place the crypto can find support. The Relative Strength Index (RSI) has been falling the past couple of weeks and now sits at 41. This means there have been some sellers moving into the stock and there is now more selling pressure than there is buying pressure.
See Also: Ethereum Classic Is On The Verge Of A Breakout: Could This One Be Bigger Than The Last?
What’s Next For Ethereum Classic?
Bulls traders want to see Ethereum Classic trade along the cup pattern and start heading back up toward the $80 level. Bulls then want to see the stock break above the $80 level and be able to hold this mark as an area of support for a possible further bullish push.
Bearish traders would like to see Ethereum Classic fall below the cup pattern and start to fall further. Bears want to see the crypto drop down and fall below the $40 dollar level and begin to hold it as resistance, possibly following with a bearish push.