Ethereum Classic Takes Breather Along With Dogecoin, Other Popular Cryptocurrencies

Ethereum Classic (CRYPTO: ETC) is trading slightly lower Monday in a market that's seeing a slight correction.

The crypto is trading lower along with other popular currencies such as Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), Litecoin (CRYPTO: LTC), and Dogecoin (CRYPTO: DOGE). According to the Robinhood Markets Inc. (NASDAQ:HOOD) app, every cryptocurrency tradeable on the app is down on the day.

Ethereum Classic was down 1.7% at $46.42 at last check.

Ethereum Classic Daily Chart Analysis

• Ethereum Classic looks to be testing out a bottom for a possible support bounce. The crypto is nearing the $40 level, where it has previously been able to bounce.
• The $80 level is an area where Ethereum Classic has found resistance in the past. This area may continue to be somewhere the stock struggles to cross above in the future.
• The crypto trades below both the 50-day moving average (green), and the 200-day moving average (blue), indicating the crypto has recently been seeing a period of bearish sentiment.
• Each of these moving averages may hold as a possible area of resistance in the future.
• The Relative Strength Index (RSI) has been falling the past couple of weeks and now sits at 35. This shows the crypto is nearing the oversold area near 30, where the selling pressure will be much greater than the buying pressure.

What’s Next For Ethereum Classic?

Bulls traders are hoping to see Ethereum Classic bounce off the $40 support and start to form higher lows. If higher lows can form, there is a chance this will turn into an uptrend. Bulls want an uptrend to form and for the crypto to move higher above the $80 resistance.

Bearish traders would like to see Ethereum Classic continue to fade lower and fall below the $40 level. Bears would then like to see the $40 level hold as an area of resistance. If this level becomes resistance, the crypto may be ready for a further drop.