Ethereum Classic Continues Consolidation Under Bellwether Indicator: What to Watch

Ethereum Classic ETC/USD was trading mostly flat during Monday’s 24-hour trading period, continuing to consolidate sideways between about $20 and $23.
The consolidation had been taking place since Jan. 15, after the crypto broke bullishly from a bull flag pattern on the daily chart.
Since Dec. 29, Ethereum climbed more than 50%, in tandem with Bitcoin BTC/USD and the wider crypto sector, which appeared to have front-run a rebound in the general market, which had seen the S&P 500 gain about 5.5% since Jan. 6.

On Monday, the S&P 500 regained the 200-day simple moving average (SMA) as support and was busting up through a long-term descending trendline. Ethereum Classic was currently consolidating under the 200-day SMA, but if the crypto was able to break up from the horizontal trading pattern, could make a run at regaining the important bellwether indicator over the next few days or weeks.
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The Ethereum Classic Chart: Ethereum Classic had been trading in an uptrend since Dec. 19, making a fairly consistent series of higher highs and higher lows. The crypto’s most recent higher low was formed on Jan. 18 at $20.10 and the most recent confirmed higher high was printed at the $23.91 mark on Dec. 14.

During Monday’s 24-hour trading session, Ethereum Classic opened with an inside bar pattern on the daily chart before temporarily breaking up from Sunday’s mother bar. The crypto rejected the break up from the pattern, however, and fell back into Sunday’s trading range, causing Ethereum Classic to print a possible lower high.
If Ethereum isn’t able to break up above the $24 level over the coming days, continued sideways consolidation is likely to occur. If the crypto falls under the $20 area, a downtrend will confirm.
Ethereum Classic is trading above the eight-day and 21-day exponential moving averages (EMAs) on the daily chart, which likely gives bullish traders some degree of confidence. For short-term traders, a break down from the eight-day EMA could be a valid stop signal.
The crypto has resistance above at $24.58 and $27.68 and support below at $20.46 and $17.91.

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This article has been originally published at: https://www.benzinga.com/markets/cryptocurrency/23/01/30530946/ethereum-classic-continues-consolidation-under-bellwether-indicator-what-to-watch?SNAPI