ethereum classic ETC/USD was consolidating almost sideways during Wednesday’s 24-hour trading session, typically trading within Tuesday’s range.
There has been a lateral consolidation since Saturday after the cryptocurrency surged 31.21% in the period from Jan. 4 to Jan. 6.
A sharp spike in the north paired with a sideways consolidation has led Ethereum Classic to settle into a possible bullish flag pattern on the daily chart.
The bull flag pattern is created with a sharp rise that forms a pole, followed by an integrated pattern that lowers the stock between channels of parallel lines or into a tight triangular pattern.
For bearish traders, “trend is your friend” (until it is no longer the case) and stocks may continue to fall within the next channel for a short period of time. and may close the trade at the bottom of the trendline.
Bullish traders will want to watch for an up-break from the top of the downtrend line for mass flag formation for entry. If the stock moves away from the bull flag pattern, the higher measured movement should be equal to the length of the pole and added to the lowest price inside the flag.
If the stock breaks below the lower trendline of the flag pattern or if the flag falls more than 50% of the length of the pole, the bull flag will go off.
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Ethereum Classic Chart: If Ethereum Classic finally breaks out of the top of the flag-forming downtrend line, the measured move shows that the cryptocurrency could surge towards the $25 mark. Bullish traders want Ethereum Classic to break out of the pattern with higher-than-average volume to show that the pattern has been recognized.
- Ethereum Classic is trading in a fairly consistent uptrend, with a recent high of $21.81 on Monday and a recent low of $19.44 on Wednesday. If Ethereum Classic breaks away from the bull market, traders will want the cryptocurrency to rise above $22 quickly to sustain the uptrend.
- With the flat consolidation, Ethereum Classic’s Relative Strength Index (RSI) dropped slightly from around 67% to 62%. It may be beneficial for the cryptocurrency to continue trading in the flag for a few more days to further lower the RSI.
- Bearish traders are hoping that Ethereum Classic will break below Wednesday’s lows and break below the 8-day exponential moving average to counteract the downtrend.
- Ethereum Classic has resistances at $20.46 and $24.58 and supports at $17.91 and $15.27.
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Photo: Courtesy of ETC on Flickr.
