On Wednesday, Ethereum Classic (CRYPTO: ETC) was attempting a bullish break of a descending trendline that has been holding the cryptocurrency down since May 14.
Ethereum Classic, a fork of Ethereum (CRYPTO: ETH), is the original form of the crypto. In July 2016, after the network was hacked, Vitalik Buterin and co-founder Gavin Wood split the crypto, with Ethereum Classic being the old form and Ethereum becoming the new and improved blockchain.
The Ethereum Classic Chart: On Wednesday, Ethereum Classic attempted to regain the eight-day exponential moving average (EMA) as support but wicked from it.
The crypto did, however, break above a downward sloping line of resistance when it broke above approximately $59.83 and big bullish volume tried to push it further.
On Tuesday, the crypto printed a bullish hammer candlestick, which typically is a reversal signal and indicates the price will climb over the following days, with the long lower wick demonstrating that buyers came in and bought the dip.
On Wednesday, Ethereum Classic was working on another bullish candlestick — a green engulfing — that validates Tuesday’s reversal candle and indicates a further push is likely in the cards.
Ethereum Classic is trading slightly below the eight-day EMA and below the 21-day EMA, which is bearish, although a small push north would help the crypto recapture the eight-day EMA as support.
Ethereum Classic is trading 147% above the 200-day simple moving average, which indicates overall sentiment in the cryptocurrency is bullish.
Bulls want to see Ethereum Classic make a daily close above the descending trendline and recapture the eight-day EMA. If Ethereum is able to recapture the eight-day EMA as support, it has room to move up toward the $70 level, which could also help it to regain the 21-day EMA.
Bears want to see the crypto continue to reject from the eight-day EMA and for it to close back under the descending trendline.
If Ethereum Classic falls back below the trendline, it could be pushed down under its lower support at the $54.33 mark. A loss of that support level could cause Ethereum Classic to revisit $40.55.
ETC Price Action: Ethereum Classic was trading up 5.92% at $60.57 at last check Wednesday.