Ethereum Classic Looks To Have Seen A Bounce At Support And May Now Be Breaking Out

Ethereum Classic (CRYPTO:ETC) is the old version of Ethereum (CRYPTO:ETH) before the company switched to the proof of stake platform. Ethereum Classic looked to have bounced near a key level and may have broken out of a pennant pattern.

Ethereum Classic was up 26.66% at $55.48 at last check Tuesday afternoon. 

Ethereum Classic Daily Chart Analysis

• Ethereum Classic was trading within a pennant pattern and looks to have possibly broken out with the large move upward Tuesday.
• The crypto is trading below the 50-day moving average (green), but above the 200-day moving average (blue). This indicates the crypto is likely in a period of consolidation.
• The 50-day moving average may hold as an area of resistance, while support may be found near the 200-day moving average.

Key Ethereum Classic Levels To Watch

• The pennant pattern looks to be breaking out after the Ethereum Classic found support, then started heading higher.
• Ethereum Classic had resistance near the $40 level before it broke above and since found support near the level multiple times.
• The Relative Strength Index (RSI) has been heating up throughout the past few days, crossing above the 50 mark. This means there are now more buyers than sellers in the cryptocurrency.

What’s Next For Ethereum Classic?

Bullish traders would like to see Ethereum Classic continue to break out of the pennant pattern. Bulls would hope to possibly see another green day before the crypto likely starts cooling off. Following a cool off bulls would like to see Ethereum Classic hold some of its gains and find some support.

Bearish traders would like to see Ethereum Classic move back down to where it was trading inside of the pennant pattern. Bears would then like to see the crypto fall further breaking below the $40 support level. If this level were to break and Ethereum Classic held below this level while consolidating, then it may be prone to see a strong bearish push.