Ethereum Classic Holds Below Previous Support Level: Is It In Trouble Or Setting Up To Climb?

Ethereum Classic (CRYPTO: ETC) is trading higher Tuesday, moving up, while the crypto market as a whole is seeing a red day. Ethereum Classic looks as though it may have begun forming higher lows and heading back toward a key level.

Ethereum Classic was up 5.37% in the past 24 hours to $32.45.

See Also: Ethereum Classic Pops As Bitcoin, Ethereum Rebound — But Can The Crypto Buck This Key Trendline?

Ethereum Classic Daily Chart Analysis

• Ethereum Classic fell below the $40 support level, which has now started to become an area of resistance as the crypto tried to reclaim the level but was unsuccessful. If this area continues to act as resistance, it could hint a further bearish push is coming in the future.
• The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating that ETC is seeing recent bearish sentiment. Each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) started to form higher lows throughout the past week and sits at 45. This shows that although more buyers have been moving into the market in the past week, there still remains more selling pressure overall.

What’s Next For Ethereum Classic?

Ethereum Classic falling below the $40 level is a bearish sign for the crypto. This previous support line now turning into resistance is an even more bearish technical signal.

Bears are looking to see the crypto be unable to break above this level in the future and are hoping to see the bearish momentum continue.

Bulls are looking to see the RSI continue to climb and for ETC to print higher lows and recover this support level again. This could bring bullish sentiment back into the crypto. Bulls also want to see the price cross back above the two moving averages.

Photo: Courtesy of ETC on Flickr