Ethereum Classic continues to gain bullish momentum after bouncing off its symmetrical triangle bottom and breaking to the upside. Price is also trading higher inside an ascending channel and is testing the resistance.
Sustained bullish momentum could lead to a break past the top and a steeper climb for Ethereum Classic. However, technical indicators are signaling a slowdown in buying pressure and a possible pullback.
For one, the 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside. In other words, sellers could take over from here. RSI is also indicating overbought conditions and likely profit-taking among buyers once the oscillator turns lower. Stochastic is also starting to move south, so Ethereum Classic could follow suit.
In that case, price could make another test of the channel bottom, which lines up with the broken triangle top. This is also in line with the inflection points at the moving averages, which add strength to the floor.
Ethereum Classic recently got a strong boost from Coinbase’s decision to add the digital asset to its trading options. In their statement, they announced:
We expect final testing to be completed by Tuesday, August 7, at which point we will announce that we’re ready to accept inbound transfers of ETC. We intend to allow 24–48 hours of inbound transfers through Coinbase Pro and Coinbase Prime before enabling trading.
This was followed by an announcement from Robinhood that they would list it on their cryptocurrencies for trading a day ahead of Coinbase. Robinhood Crypto is currently available in 19 states and the team is working to expand to more.
This inclusion could bring a lot of volume and trading activity for Ethereum Classic, and the positive news did bring a lot of gains so far this month.