Ethereum Classic (CRYPTO: ETC) gave the bulls a gift this week and held above a key level at the $32 mark and began to trade sideways, just as Benzinga wrote may happen on Monday.<\/p>\n
A sell-off in the general markets on Thursday and Friday morning leading into Fridays monthly options expiry spilled over into the cryptocurrency market andby Friday afternoon, the SPDR S&P 500. ETF Trust(NYSE:SPY) was bouncing up slightly off the open and pulling the crypto sector up with it.<\/p>\n
Ethereum Classic has been trading more in tandem with Bitcoin (CRYPTO: BTC) than Ethereum (CRYPTO: ETH) recently, in a consistent downtrend off the November highs. That may be set to changebecause Ethereum Classic not only held above the key level, but on Friday printed a bullish pattern on the daily chart.<\/p>\n
See Also:How to Buy Ethereum Classic<\/p>\n
The Ethereum Classic Chart: Ethereum Classics downtrend dragged the crypto down almost 50% from the Nov. 9 high of $65.33 to a low of $33.31 on Wednesday. The crypto then bounced up slightly from the level but on Friday retested it as support.<\/p>\n
The retest of the support level and subsequent bounce up has caused the crypto to print a bullish double bottom pattern at the level. If the pattern is recognized, Ethereum Classic could be in for a bullish weekend ahead. It is worth noting that Bitcoin also printed a double bottom pattern near the $45,500 level on Friday.<\/p>\n
By Friday afternoon, Ethereum Classic was working to print a bullish hammer candlestick on the daily chart, which can often signal a reversal to the upside is in the cards. If Ethereum Classic is able to trade up above the most recent lower high the $36.82 level that was printed on Thursday it will negate the downtrend and could set the crypto into a new uptrend.<\/p>\n
Ethereum Classics relative strength index (RSI) has been hovering near or below the 30% level since Dec. 4. When a stock or cryptos RSI reaches orexceeds the level, it becomes oversold, which can be a buy signal for technical traders.<\/p>\n
To make a meaningful move to the upside over the coming days, Ethereum Classic will need to see increasing bullish volume. On Friday, the cryptos lower-than-average volume signaled continued consolidation at about 63,540 compared to the average 10-day volume of 147,257.<\/p>\n
Ethereum Classic is trading below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending below the 21-day, both of which are bearish indicators. The crypto is also trading below the 50-day simple moving average, which indicates longer-term sentiment is bearish.<\/p>\n
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Image: ETC Public Domain via Flickr<\/p>\n
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