Ethereum Classic Looks To Be Forming Into A Pennant Pattern, Could See A Breakout Soon

Ethereum Classic (CRYPTO:ETC) is the original version of Ethereum (CRYPTO:ETH) that uses the proof of work platform. This is slightly different from the new version of Ethereum that runs on a proof of stake platform. Ethereum Classic now runs as an altcoin on the Ethereum chain.

Ethereum Classic was up 0.20% at $68.43 at last check. Below is a technical analysis of Ethereum Classic’s chart.

Ethereum Classic Daily Chart Analysis:

• Ethereum Classic looks to be forming into what technical traders might call a pennant pattern.
• The crypto is trading above both the 50-day moving average (green), and the 200-day moving average (blue). This indicates sentiment in the cryptocurrency is likely bullish.
• Both of these moving averages are places where the price may find support.

Key Levels To Watch:

• The pennant pattern looks to be nearing the end of the pattern soon.
• The pennant pattern happens after the price is condensed between narrowing highs and lows until the price “breaks” the resistance or support in the pattern and sees a strong move.
• The move following the break of the pattern may go either way. Many traders think of a pennant pattern as bullish, but the pattern may also break out to the downside.

What’s Next?

Bullish technical traders would like to see the crypto break above the resistance in the pattern and see an upwards move. With some consolidation after the potential upwards move, the stock may eventually see further upwards movement.

Bearish technical traders would like to see the crypto fall and break out of the pattern to the downside. A break below the pattern support and the stock may see a further dropoff.