Bitcoin (USD-BTC) Y Ethereal (ETH-USD) are often considered the two leaders in the cryptocurrency space. To the surprise of some investors, the group has been trading quite well and actually started to rally a few days before the rally we saw in mid-March. However, many may not be familiar with the smaller version of Ethereum: classic ethereal (ETC-USD). That too has been trading well.
So what is Ethereum Classic? According Investopedia:
“Ethereum Classic (ETC) is an open source, decentralized, blockchain-based distributed cryptocurrency platform that runs smart contracts. Ethereum Classic was formed in 2016 as a result of a hack of The DAO, a smart contract that operates on the Ethereum blockchain. The original blockchain was split in two, with most users opting to reverse the hack and return the stolen funds.”
Also, Ethereum Classic describes himself like the following:
“By combining the technology of ETH with the philosophy of BTC, ETC is uniquely positioned to be the smart contract platform of the future as other chains are compromised or captured by special interests.”
Like other cryptocurrencies, Ethereum Classic had been trading quite well. It shot up from March lows near $25 and briefly eclipsed $50. So while everyone else seemed to be looking at the nasdaq, ETC and others quietly posted significant gains.
With the recent decline, Ethereum Classic has retraced half of the rally and is returning to the rising 50-day moving average. It is a bit of a mixed bag, however, as it is below the rest of its key daily moving averages (the 10, 21 and 200 day moving averages) as well as the daily VWAP measure.
From here I want to see if it can hold the 50 day moving average and a 50% retracement. If he can do that, the $40 area becomes key for investors. That’s where you find the 200 and 10-day moving averages, as well as the daily VWAP measure.
Above $40 opens the door to the $43.50 to $45.50 area, as well as the 21-day moving average.
On the downside, keep an eye on the $33.25 area if Ethereum Classic misses 50 days. Close to that mark, the crypto will find the 61.8% retracement. Below that, we will have to consider a possible test of uptrend support.
Us recently watched in Bitcoin too. Although it has close support, it risks a further drop towards notable support.
As of the date of publication, Bret Kenwell did not have (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publishing Guidelines.