Ethereum Classic (CRYPTO: ETC) on Tuesday rallied up over a descending trendline Benzinga called out on Aug. 21 and on Wednesday the crypto soared up almost 5% through a resistance level at $65.10.
Ethereum Classic is likely riding the tailwinds of bellwethers Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) which were trading up about 3% and 8%, respectively.
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The Ethereum Classic Chart: Ethereum Classic skyrocketed over 100% between July 21 and Aug. 15 and then consolidated about 24% lower under pushed down by a descending trendline from Aug. 16 to Aug. 21 before breaking out. On Aug. 26 and Aug. 27 the crypto hit a low of $58.69 creating a bullish double bottom pattern which pushed Ethereum Classic into an uptrend.
Within the uptrend Ethereum Classic hit an Aug. 28 high of $66.60 before making an Aug. 31 higher low near the $60.50 level and on Wednesday made a higher high above $67. As long as Ethereum Classic holds above Friday’s low-of-day the uptrend looks set to continue.
By Wednesday afternoon trading volume in Ethereum Classic had already surpassed its average 10-day volume. Volume indicates the amount of interest in a stock or crypto and the volume in Ethereum Classic indicates traders are bullish.
Ethereum Classic is trading above the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The crypto is also trading above the 200-day simple moving average which indicates overall sentiment is bullish.
- Bulls want to see Ethereum Classic close the day above the $65.10 level and for sustained bullish volume to push the crypto up towards a higher resistance at the $72.65 mark. If Ethereum Classic can regain the level as support, it has room to move up toward $79.09.
- Bears want to see big bearish volume come in and drop Ethereum Classic down below the $65 level and back below the descending trendline of the triangle which would push it down below a lower support at $60.89. If the crypto loses the level as support, it could fall toward $58.69.