The previous week worked wonderfully for the cryptocurrency market as most cryptos showed significant growth. Ethereum Classic was among the cryptocurrencies that followed the bullish trend, following big players like Ethereum and Bitcoin.
All three cryptocurrencies registered an RSI (relative strength index) of more than 70%. The figure put them into the overbought category, asking for consolidation.
Some technical traders treat extended relative strength indexes as a sell signal. On the other hand, many sold the cryptos quickly in hopes of buying back and average down or lower the trade. All three cryptocurrencies showed a low average daily volume, showing traders were standing their ground, indicating a bullish trend.
Tuesday witnessed ETH Classic’s RSI dropping to 65%, settling into two bullish patterns while still holding above the 65 dollars support.
ETH Classic has been within a symmetrical triangle since June 1st, but the crypto bullishly broke the barrier on August 7th. The cryptocurrency went on to trade sideways for five consecutive days, consolidating the higher movement. Ethereum also went up around 30% and spent two days consolidating the move.
The recent rise followed by quick consolidation helped ETH Classic prepare a bull flag pattern on the daily chart. The chart formed within August 13th and 15th, the period ETH Classic spent to consolidate.
If the cryptocurrency manages to break from the flag pattern bullishly, it may increase another 30% from the lowest point. It means the cryptocurrency might even reach 86.50 dollars.
Ethereum is following a similar pattern as it is trading in a bullish rounded pattern. The pattern indicates that the cryptocurrency might reach higher prices in the near future. It started to form with a decrease in price starting on May 28th, followed by a shrewd turn on July 20th.
Although the market is trading a bit low on Wednesday, it is more stable than in the previous two months.