Benzinga
Published Jun 22, 2022 19:58
Updated Jun 22, 2022 20:41
Ethereum Classic Falls With Bitcoin, Ethereum But Here's Why The Crypto's Trend May Reverse
Ethereum Classic (CRYPTO: ETC) was trading about 5% lower on Wednesday, in sympathy with Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which were sliding over 2% and 4%, respectively.
Ethereum Classic provided a relief bounce for traders between June 18 and June 21, soaring 36% to top out at the $16.97 level on Tuesday. The move higher over that timeframe negated the downtrend Ethereum Classic had been trading in since May 25, but an uptrend has yet to be confirmed.
Brief uptrends occur in every bear market and although crypto is currently experience a winter season, the crypto looks set to trade higher over the short-term if it can print a higher low over the coming days, which would set it into an uptrend.
An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.
The higher highs indicate the bulls are in control, while the intermittent higher lows indicate consolidation periods.
Traders can use moving averages to help identify an uptrend, with rising lower time frame moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend.
Rising longer-term moving averages (such as the 200-day simple moving average) indicate a long-term uptrend.
A stock or crypto often signals when the higher high is in by printing a reversal candlestick such as a doji, bearish engulfing or hanging man candlestick. Likewise, the higher low could be signaled when a doji, morning star or hammer candlestick is printed. Moreover, the higher highs and higher lows often take place at resistance and support levels.
In an uptrend the "trend is your friend" until it’s not, and in an uptrend there are ways for both bullish and bearish traders to participate in the stock:
The Ethereum Classic Chart: On Tuesday, Ethereum Classic printed a higher high above the June 15 lower high of $16.11, which negated the downtrend. On Wednesday, the crypto was pulling back on lower-than-average volume, which indicates healthy consolidation.
See Also: If You Invested $1,000 In Bitcoin When Michael Saylor Said To Mortgage Your House, Here's How Much You're Down
Photo: Courtesy of ETC on Flickr
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