Ethereum Classic (CRYPTO: ETC) is rallying alongside the rest of the crypto market Monday with many cryptos trading up over 10% today.
Ethereum Classic is the original version of Ethereum that executed smart contracts with a Proof-Of-Work platform. Ethereum later changed to a Proof-Of-Stake platform after there was a hack on the platform.
- Ethereum Classic recently bounced off an area where two key levels of support crossed each other. When the crypto fell to support as two levels of support crossed, it added to the strength of the support level.
- Ethereum Classic crossed above the 50-day moving average (green), and trades above the 200-day moving average (blue), indicating the sentiment in the crypto is turning bullish.
- Each of these moving averages may hold as an area of support in the future.
Key Ethereum Classic Levels To Watch
- Ethereum Classic saw a bounce near the $40 level as the higher low trendline also crossed the $40 level at that time.
- The crypto continues to form higher lows and now looks to be heading back up toward the next strong resistance level near the $80 mark.
- The Relative Strength Index (RSI) was trading near the oversold area when it saw a bounce. Now the RSI has crossed back above the middle line and sits at 60. If the RSI can near the overbought area, the price may continue to rise.
What’s Next For Ethereum Classic?
Bullish traders would like to see Ethereum Classic continue to form higher lows and head toward resistance. Bulls then want to see the crypto be able to break above the $80 resistance and see a period of consolidation. Consolidation while holding the gains made could indicate the crypto is ready for the next leg up.
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Bearish traders would like to see Ethereum Classic fall and first cross below the higher low trendline, and then cross below the $40 support level. Bears want to see the crypto fall below the moving averages as well to see a potential change in trend and sentiment.
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