Ethereum Classic ETC/USD has, so far, failed to gain the steam Bitcoin BTC/USD and Ethereum (CRYPTO ETH) gathered to erase the losses caused by the Sept. 7 cryptocurrency flash crash that coincided with El Salvador adopting Bitcoin as legal tender.
Ethereum Classic has been stuck within a tight sideways trading pattern ranging between $50.55 and $57.45 for the past 18 days. The crypto is likely consolidating the flash crash and the declining daily volume indicates Ethereum Classic is running out of both buyers and sellers.
Declining volume is often followed by a big uptick in volume, which could help the crypto choose a direction. Ethereum Classic is more likely to break bullishly from the sideways trading pattern due to a bullish pattern on the 24-hour chart.
The Ethereum Classic Chart: On Oct. 4 and Oct. 17, Ethereum Classic created a bullish double bottom pattern near the $50 level, but has yet to react to the pattern. The crypto may need to back-test the lower support level again, which would create a bullish triple bottom pattern.
Until the crypto is able to break bullishly or bearishly from the sideways trading pattern, Ethereum Classic may provide aggressive bulls and bears the opportunity to play the price fluctuations: Bulls can buy the crypto at the bottom of the trend and sell when Ethereum Classic prints a bearish reversal candle, while bears can short at the top of the range and exit their positions when the crypto prints a bullish reversal candle.
On Tuesday, Ethereum Classic was working to print a doji candlestick, which often indicates a trend change: Because the crypto has declined about 8% from the Oct. 15 high of $56.90, the doji indicates Ethereum Classic is likely to trade higher on Wednesday.
Ethereum Classic is trading slightly below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA and 21-day in line, which indicates indecision. The crypto will need to trade higher over the coming days to avoid the eight-day EMA crossing below the 21-day. The crypto is also trading below the 50-day simple moving average, which indicates longer-term sentiment is bearish.
- Bulls want to see big bullish volume come in and break Ethereum Classic up above the $57.45 mark and then for momentum to push the crypto up toward a resistance level at $60.89, which would break Ethereum Classic up being range-bound. Above the level there is further resistance at $65.10.
- Bears want to see big bearish volume come in and drop Ethereum Classic down below the $50.50 level, which would shift the crypto into a downtrend. Ethereum Classic has support below the level near $44.66.
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