- Ethereum Classic remains bullish despite retreat from the weekly high at $5.24.
- The bullish flag pattern is likely to give ETC a boost above the weekly high with the focus shifting to regions above $6.0.
Ethereum Classic just like EOS and Bitcoin Cash is pushing its luck with the hope of breaking the downtrend witnessed since Thursday. ETC/USD recently made a remarkable move from a consolidation range between $4.5 and $4.8. The surge to levels above $5.2 took place following a key correction move above the Simple Moving Averages (SMAs).
The diminishing buying pressure above $5.2 led to the formation of a weekly high of $5.24. The correction in the last 24 hours has been bearish within a flag pattern. Ethereum Classic, however, appears to have found support at $4.8 and is struggling to correct towards $5.0.
The immediate upside is limited by the 50 SMA on the hourly chart. A minor push above $4.9 could end up in a break out above the bullish flag pattern. This will change the focus of the buyers from $5.0 to levels above the weekly high.
Glancing lower, $4.8 continues to be a critical support zone. The 100 SMA currently at $4.77 is in line to offer support in the event declines continue. The Moving Average Convergence Divergence (MACD) dive into the negative zone shows that selling pressure is still present. Traders can expect a period of consolidation before an actual breakout comes into the picture.