Ethereum Classic is up by more than three per cent in today’s trading session. The cryptocurrency is extending yesterday’s aggressive bullish session, which saw the prices rise by 14 per cent. The two consecutive trading sessions have helped the Ethereum Classic price surge by 22 per cent in the past five days.
The month of May price gains is a reversal of a long-term downward trend that saw the cryptocurrency losing more than 45 per cent of its value in April. One of the main reasons that we saw much of the drop in April, however, has little to do with the underperformance of the Ethereum Classic. The entire cryptocurrency industry struggled during the month, with most cryptos losing more than 30 per cent. This included Ethereum, which is positively correlated with the Ethereum classic. The result of the Ethereum also meant a high likelihood of the Ethereum classic following suit.
The Ethereum Classic price has surged by more than three per cent in today’s trading session. The past five days have also seen Ethereum gain over 20 per cent in the markets. It is currently trading at $2928.
However, the current price gains are likely a bearish flag. Looking at the daily chart below, the Williams Alligator and the RSI indicators are still very bearish. The chart also shows the long-term trend of the cryptocurrency is bearish. Using a Fibonacci retracement tool, we can also see the current prices have retraced back to the 23.6 per cent level. The level, in most cases, is not a sign of trend reversal but rather a bearish flag. Therefore, the current rise in price is due to a bearish flag.
Despite the past two days showing strong and aggressive bullish moves, my Ethereum Classic analysis for Ethereum classic is the prices to continue with the fall. There is a very high likelihood of the next bearish move wiping this month’s price gains. The prices are likely to trade below $2720 in the next few trading sessions.
This post was last modified on %s = human-readable time difference 08:55