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Ethereum Classic (CRYPTO: ETC) has lagged behind other popular cryptocurrencies. While Bitcoin (CRYPTO: BTC), Ethereum (ENCRYPTION: ETH) and Dogecoin (CRYPTO: DOGE) climbed around 25%, 20% and 24%, respectively since October 1, Ethereum Classic is up 16%.
When a sector goes up or down, there are often individual names that take longer to catch up.
The crypto has struggled against an area of strong resistance at $ 55 and has spent the last four trading days consolidating sideways below the level. That could change, however, as a large bullish volume entered Ethereum Classic on Wednesday.
See also: Bitcoin, Ethereum, Dogecoin on a bull run as SEC confirms it does not have Chinese-like plans to ban crypto
The classic Ethereum chart: The large bullish volume caused Ethereum Classic to imprint a hammer candlestick on the daily chart, showing that the bulls bought the low when the crypto retested support at the $ 52.93 level in the winning hours of the morning on Wednesday. .
If the crypto closes the 24-hour trading session at 8 p.m. ET near its high price of the session, this could indicate that Ethereum Classic will trade higher on Thursday.
If Ethereum Classic is able to break out and hold trade above the $ 55 level, this could confirm a reaction to a bullish flag pattern. The pattern pole was created between September 30 and October 2, and the flag was formed between October 2 and Tuesday. If the pattern was recognized, Ethereum Classic could go up to $ 66.
As of mid-afternoon on Wednesday, Ethereum Classic had a daily trading volume of over 280,000 compared to the 10-day average of 228,409. When a stock or crypto has above-average trading volume , this indicates a high level of investor interest.
Ethereum Classic is trading above the eight-day and 21-day exponential moving averages, with an eight-day and 21-day EMA trend online. If Ethereum Classic trades even slightly higher in the future, the eight-day EMA will move above the 21-day, which would be bullish.
The crypto is trading above the 200-day simple moving average, indicating an overall bullish sentiment. Bulls will want to see the eight-day and 21-day EMAs exceed the 200-day SMA in the future.
- The bulls also want to see Ethereum Classic recover the $ 55.12 level. If the crypto is able to regain the area as support, it has room to move up to $ 60.
- The bears want to see the crypto continue to reject the level and for the volume to turn bearish. Below the level, Ethereum Classic has support at $ 50.93 and $ 44.66.
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