Ethereum Classic (CRYPTO: ETC) stalled at a resistance level near the $55 level on Saturday as Bitcoin (CRYPTO: BTC) and Dogecoin (CRYPTO: DOGE) consolidated their respective 9.91% and 9.06% advance made on Friday.
The crypto market has, so far, been unable to erase the loses made on Sept. 7 when El Salvador’s adoption of Bitcoin as legal tender coincided with a flash crash where the apex cryptocurrency declined over 18% in a single day. The three popular cryptocurrencies now appear to have put in a bottom, and a reversal to the upside may be in the cards.
The Ethereum Classic Chart: On Friday Ethereum Classic printed a big Marubozu candlestick. For technical traders, this indicated higher prices are likely to come. On Saturday the crypto back-tested the $50 mark as support and bounced.
Ethereum Classic was working on printing another bullish green candle on Saturday while consolidating under the $55.12 on lower timeframes. If the crypto is able to close near its high-of-day it could indicate higher prices will come again on Sunday.
On Friday the crypto was able to make a higher high above the Sept. 24 high of $51.88. This indicates a trend change to the upside is in the works, although a higher low will be needed in the future to confirm the trend.
Friday’s bullish move north allowed Ethereum Classic to regain support of the eight-day and 21-day exponential moving averages (EMAs), which is bullish. If the crypto can continue to incline, the eight-day EMA will cross above the 21-day, which would give further confirmation of the uptrend. Ethereum Classic regained support of the 200-day simple moving average as well, which indicates the overall sentiment in the crypto has turned bullish.
- Bulls want to see big bullish volume come in and drive Ethereum Classic up above the $55 level. If the crypto can regain the level as support, it has room to trade up toward the $60 area.
- Bears want to see big bearish volume come in and knock the crypto back down under the $50 level, which would cause Ethereum Classic to lose support of the three moving averages. Below the level, there is support at the downward sloping trendline and at the $44 level.