Ethereum Classic (CRYPTO: ETC) has been a laggard to other popular cryptocurrencies. While Bitcoin (CRYPTO: BTC), Ethereum (CRYPT: ETH) and Dogecoin (CRYPTO: DOGE) havw soared about 25%, 20% and 24%, respectively since Oct. 1, Ethereum Classic has risen 16%.
When a sector moves either bullishly or bearishly, there are often individual names that take longer to catch up.
The crypto has been battling a heavy resistance area at $55 and has spent the last four trading days consolidating in a sideways pattern below the level. That may be set to change, however, because on Wednesday big bullish volume came into Ethereum Classic.
The Ethereum Classic Chart: The big bullish volume has caused Ethereum Classic to print a hammer candlestick on the daily chart, which demonstrates bulls bought the dip when the crypto retested support at the $52.93 level in the earning morning hours on Wednesday.
If the crypto closes the 24-hour trading session at 8 p.m. ET near its high-of-session price, it could indicate Ethereum Classic will trade higher on Thursday.
If Ethereum Classic is able to pop over, and maintain trading above, the $55 level it could confirm a reaction to a bull flag pattern. The pole of the pattern was created between Sept. 30 and Oct. 2 and the flag was formed between Oct. 2 and Tuesday. If the pattern has been recognized, it could take Ethereum Classic back up toward $66 mark.
As of midafternoon Wednesday, Ethereum Classic had a daily trading volume of over 280,000 compared to the 10-day average of 228,409. When a stock or crypto has above average trading volume, it indicates a high level of investor interest.
Ethereum Classic is trading above the eight-day and 21-day exponential moving averages, with the eight-day EMA and 21-day trending in line. If Ethereum Classic trades even slightly higher in the future, the eight-day EMA will cross above the 21-day, which would be bullish.
The crypto is trading above the 200-day simple moving average, which indicates overall sentiment in bullish. Bulls will want to see the eight-day and 21-day EMAs cross above the 200-day SMA in the future.
Bulls also want to see Ethereum Classic reclaim the $55.12 level. If the crypto is able to regain the area as support, it has room to move up toward $60. Bears want to see the crypto continue to reject the level and for the volume to turn bearish. Below the level Ethereum Classic has support at $50.93 and $44.66.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.