The crypto market has yet to recover from the losses suffered on Sept. 7, when El Salvador’s acceptance of Bitcoin as legal currency coincided with a flash meltdown in which the apex cryptocurrency lost nearly 18 percent in a single day. The three most popular cryptocurrencies currently look to have reached a bottom, and an upward reversal might be on the way.
Recently Monday, ETC generated a large Marubozu candlestick on its chart. For technical traders, this meant that greater prices were on the way. Yesterday on Tuesday, the cryptocurrency came back from a test of $50 as support.
Ethereum Classic Price Chart – Source: CoinMarketCap
On lower timeframes, Ethereum Classic was attempting to print another bullish green candle on Saturday, while stabilizing under $55.12. If the crypto can close around its day’s high, it might signal that higher prices will return on Friday. This suggests a move to the upside is in the works, however a higher low will be needed to confirm the trend in the future.
Ethereum Classic was able to reclaim the support of the 8-day and 21-day exponential moving averages (EMAS) Tuesday, which is positive. If the cryptocurrency can maintain its upward trajectory, the eight-day EMA will cross above the 21-day, confirming the uptrend. Ethereum Classic has reclaimed support from the 200-day simple moving average, indicating that the crypto’s general mood has shifted to positive.
- Bulls hope to witness a surge in bullish volume that pushes Ethereum Classic above $55 USD. If the cryptocurrency can reclaim the level of support, it has the potential to trade up to $60 USD.
- Bears hope to see large negative volume enter the market and push the cryptocurrency below $50 USD, causing Ethereum Classic to lose support from the three moving averages. The downward sloping trendline and the $48 USD level provide support below the level.