Can Ethereum Classic Break From This Key Pattern To Make 2022 Bull Run A Reality? – Ethereum Classic – United States Dollar ($ETC)
Ethereum Classic (CRYPTO: ETC) was trading about 1.7% lower at one point on Tuesday, in sympathy with Bitcoin (CRYPTO: BTC), which was falling about 1%.
Ethereum Classic, from which Ethereum (CRYPTO: ETH) was forked, has been trading more closely in unison with Bitcoin over recent months — although Ethereum Classic was unable to piggyback Bitcoin to reach a new all-time high in November.
On Dec. 24, the Ethereum Classic community received positive news that starting in January, the ETC Cooperative would begin funding the development of the Core-Geth client, which is Ethereum Classic’s main node.
The ETC Cooperative is a public charity that supports the growth and development of Ethereum Classic and has been involved with Ethereum Classic’s Hyperledger Besu client since September.
The news may be helping Ethereum Classic to hold above a support level at $33.55, which will avoid the crypto confirming a downtrend. Comparatively, Bitcoin confirmed it is in a downtrend on Tuesday when it fell below the Dec. 31 low-of-day at the $46,650 mark.
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The Ethereum Classic Chart: On Dec. 30 and Dec. 31, Ethereum Classic printed a double bottom near the $33.50 level and bounced up from the area over the two days that followed.
On Tuesday, the crypto failed to trade down to that level, which may indicate Ethereum Classic is settling into a triangle pattern when paired with the higher low printed on Jan. 2.
If the triangle pattern is recognized, Ethereum Classic is set to break up from the formation before it reaches the apex on Jan. 6. Traders can watch for higher-than-average volume to come into the crypto when it breaks from the pattern to confirm whether the triangle was recognized.
The sideways trading pattern within the triangle is being formed on lower-than-average volume, which indicates the crypto is going through a period of consolidation. By midafternoon on Tuesday, Ethereum Classic’s trading volume measured in at just 74,768 compared to the 10-day average of 98,422.
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.
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- Bulls want to see big bullish volume come in and break Ethereum Classic up from the triangle, which could allow the crypto to regain both EMAs as support. There is resistance above at $36.82 and $40.57.
- Bears want to see big bearish volume come in and break Ethereum Classic down from the triangle, which would confirm the crypto is in a downtrend. Ethereum Classic has support below at $32.17 and $27.67.