Ethereum Classic (CRYPTO: ETC) fell 13.21% on Tuesday before bouncing to just above a support level at $50.78. The decline was in sympathy with crypto market leaders Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which retraced 5.52% and 7.7%, respectively, over the same 24-hour period.
On Wednesday, Ethereum Classic was trading mostly flat in consolidation but was settling into a bearish pattern that may signal trouble for the crypto over the coming days.
The Ethereum Chart: Ethereum is trading in a bearish inside bar pattern, with Wednesday’s price range taking place near the lower end of Tuesday’s mother bar. The pattern is considered bearish in this form because Ethereum Classic was trading in a downtrend before forming the inside bar.
The downtrend began on Nov. 9 after Ethereum Classic hit a high of $65.33 and rejected the level, which caused the crypto to fall to a low of $52.33 the following day. The most recent lower high was printed on Nov. 11 at $58.13 and the most recent lower low on Tuesday, which confirmed the trend.
Over the course of the coming days Ethereum Classic may bounce up to create another lower high and then fall under the $47.56 level to print another lower low. The downtrend will be negated if Ethereum Classic is able to surpass the Nov. 11 high or if the crypto settles into a triangle pattern.
Wednesday’s price action within the inside bar is considered to be consolidation because of the lower-than-average trading volume. By midafternoon, Ethereum Classic’s daily trading volume stood at about 238,050 compared to the 10-day average of 469,817. The low volume indicates a lack of high interest in the crypto.
Ethereum Classic is trading below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending below the 21-day, both of which are bearish indicators. 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 cause Ethereum Classic to make a trend change by trading above the $58.13 level. The crypto has resistance above at $55.12 and $60.89.
- Bears want to see continued bearish consolidation and then for big bearish volume to come in and drop Ethereum Classic down from the inside bar pattern. The crypto has support below at $50.55 and $44.66.Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.