Ethereum Classic has been trending downwards in tandem with the general market; however, signs of bullish momentum can be observed in the recent timeframes. In the past week, Ethereum Classic declined by 4% but in the daily timeframe, the cryptocurrency is going upwards. At the time of press, Ethereum Classic stands at a price level of $41.56. The price of the cryptocurrency has increased by nearly 7% in the past twenty-four hours while the daily trading volume has declined by 22%.
Ethereum Classic technical analysis
The market sentiment for Ethereum Classic continues to be bearish despite the recent bullish divergence in the market. Out of the total twenty-six technical indicators, twelve are giving out an indication of sell with nine indicators standing at a neutral position and only five indicators bullish with a buy signal. The oscillators are mainly neutral while the moving averages suggest a strong sell.
The bulls in the daily timeframe need to gear up in order to cause a trend reversal as Ethereum Classic is still going downwards. The cryptocurrency has been identified to be operating with a descending trendline. The trendline has also formed a triangular pattern with a horizontal support line at the price level of $37.44. Ethereum Classic can be observed to be approaching the end of the triangular pattern and; hence, a break out is likely. Although the direction of the break out is hard to determine at this stage, the odds may be favoring the downside given the strength of the bearish pressures.
Will Ethereum Classic go up?
Ethereum Classic has given a phenomenal performance in the bull run of 2021 and it did not end with the bull run. The cryptocurrency had been the star of the second quarter even though the market turned bearish and cryptocurrencies started falling. ETC coin had a staggering 297% gain Q2 of 2021. The hard fork of Ethereum is gaining increasing popularity and even though the short-term outlook is bearish, in the long-run ETC coin is expected to further increase in value.