Ethereum Classic (CRYPTO: ETC) shares are trading higher Tuesday as they struggle to reclaim a key support level the crypto was once able to hold above. This rebound, after having a down day yesterday, tracks with the rest of the crypto market.
Ethereum Classic was up 3.70% at $35.31 Tuesday afternoon at publication.
See Related: Ethereum Classic May Need To Cross Above A Key Level
Ethereum Classic Daily Chart Analysis
- Ethereum Classic still trades below the $40 support and needs to cross back above this level or it could see a strong bearish move in the future. If able to reclaim this level, the crypto may find a strong resistance level near the $60 area.
- The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue). This shows the crypto is trading with bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) continues to fade lower and sits at 30 on the indicator. This shows the crypto is on the border of the oversold area and is seeing many more sellers than buyers in the market.
What’s Next For Ethereum Classic?
Sellers came into the crypto and it fell below the higher low trendline showing higher lows were unable to be formed anymore. No higher lows show the bullish trend the crypto was trading in is no longer intact. This gives bears a chance to move into the crypto and push it lower. Bulls are looking to see Ethereum Classic cross back above the $40 level and be able to hold above it. Bears are looking to see the crypto continue to fall and to hold the $40 level as a place of resistance.
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