Ethereum Classic Has To Hold This Support Level Or It Could Really Start Sliding Lower

Ethereum Classic ETC/USD is trading higher Wednesday, moving up alongside the rest of a bullish crypto market. Ethereum Classic looks like it is heading back toward support where it may be able to make a bounce in the coming days.

Ethereum Classic was up 10.38% at $50.97 at last check Wednesday.

Ethereum Classic Daily Chart Analysis

• Ethereum Classic has been falling for a few weeks after being rejected at resistance and is now heading toward support in what technical traders call a sideways channel.
• The $80 level is somewhere Ethereum Classic has struggled to cross above in the past and may continue to hold as resistance in the future. The $40 mark is an area where the crypto has found support before in the past and somewhere it could bounce again in the future.
• The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating recent sentiment has turned bearish.
• These moving averages may both hold as an area of resistance in the future.
• The Relative Strength Index (RSI) fell to the border of the oversold area and looks to have bounced higher. The RSI now sits at 38, which shows there is still more selling pressure in the crypto than buying pressure.

Bullish traders are looking to see a bounce off support from bullish traders before the crypto heads back toward resistance. Then bulls are hoping to see the price cross above resistance and then hold the $80 level as support.

Bearish traders would like to see Ethereum Classic continue to fall and drop toward the $40 level. If the crypto can hold the $40 level as an area of resistance, it may hint the crypto is ready to see another downward push.