Ethereum Classic (CRYPTO: ETC) has surged about 26% in the last 24 hours in response to the bullish quadruple bottom pattern created at the $ 25.25 level that Benzinga called on March 15.
The cipher was working the other way around Bitcoin (Cryptography: BTC) and Ethereum (CRYPTO: ETH), down more than 2% and 3% on Sunday, respectively.
One possible underlying reason for the massive spike could be that cryptocurrency miners are switching to Ethereum Classic before Ethereum completes its transition to the Proof of Stake Protocol. 2022. Ethereum Classic has pledged to maintain Proof of Work cryptography with the belief that the protocol provides maximum decentralization and the highest level of security.
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Ethereum Classic Chart: When Ethereum Classic responded bullishly to the quadruple bottom pattern on March 16, Cryptography reversed the course on an upward trend. Uptrends are on Saturday and Sunday, when Ethereum Classic printed a higher low at the $ 26.52 level on March 18, and the crypto formed a high above the latest high of $ 27.65 created on March 16. It was confirmed.
Ethereum Classic will eventually print even higher lows on the uptrend. This could be offered to bullish traders who are not yet at a solid entry point. The Relative Strength Index (RSI) of the crypto is registered at the 76% level, so high lows may be printed within the next few days. If the stock or crypto RSI reaches or exceeds the 70% mark, it will be overbought. This can be a sell signal for technical traders.
A lot of volume is back in Ethereum Classic. This shows the high level of trader and investor interest in cryptocurrencies. By early Sunday afternoon, Ethereum Classic’s volume was over 918,000, compared to the 10-day average of 214,779.
Ethereum Classic trades above the 8th and 21st Index Moving Averages (EMA) and the 8-day EMA is above the 21st, both of which are bullish indicators. Cryptocurrencies are also trading above the 50-day simple moving average (SMA), indicating that long-term sentiment has become bullish. Note that Ethereum Classic is extended from all three moving averages. This indicates that pullbacks are likely to occur soon.
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- The Bulls want to see the final lateral integration in the form of an inside bar pattern. Or, let cryptocurrencies print higher lows before selling pressure comes in and a big bullish volume pushes Ethereum Classic to SMA over 200 days. If Ethereum Classic can regain the 200-day SMA as a support and continue trading above the level for a period of time, the 50-day SMA will exceed 200 days and form a bullish golden cross. Cryptography has the above resistance at $ 38.95 and $ 41.41.
- Bears wants to see Ethereum Classic reject the 200-day SMA, followed by a big bearish volume and dropping the crypto below the 8-day EMA. Bears looking for short-term trading can choose to get into the scalp when cryptocurrencies print bearish reversal candlesticks such as Doji and reverse hammer patterns in a lower time frame. Ethereum Classic has the following support for $ 35.38 and $ 32.17:
Photo: ETC provided by Flickr
