Ethereum Classic ETC/USD was sliding about 3% lower during Wednesday’s 24-hour trading session amid cascading fears stemming from the FTX fallout.
The lending division of crypto investment bank Genesis Global Trading temporarily halted redemptions and the initiation of new loans Wednesday due to “extreme market dislocation and loss of industry confidence caused by the FTX implosion,” DCG vice president Amanda Cowie said.
Confidence in the sector turned explosively bearish following FTX’s bankruptcy and allegations that the company’s CEO and founder, Sam Bankman-Fried, committed fraud.
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Bitcoin BTC/USD ticked over 2% lower, falling under Tuesday’s low-of-day, while Ethereum ETH/USD fell almost 4%.
Ethereum Classic, like much of the crypto sector, has been trading in a mostly sideways range for the past week in consolidation but may be getting ready to make another large move.
The Ethereum Classic Chart: Ethereum Classic’s consolidation has been taking place in a tightening sideways range, which has settled the crypto into a triangle pattern on the daily chart. When the pattern is paired with the 33% decline that occurred between Nov. 6 and Nov. 9, Ethereum Classic could be printing a bear flag pattern.
- If Ethereum Classic breaks down bearishly from the lower ascending trendline of the triangle, the measured move suggests the crypto could fall toward $15. The crypto is set to meet the apex of the triangle on Friday and traders and investors can watch for a breakup or down from the pattern on higher-than-average volume to gauge future direction.
- If Ethereum Classic breaks down from the bear flag, the crypto may find support at the lower descending trendline of a falling channel pattern that Ethereum Classic has been trading in since Aug. 13. If that happens, bullish traders can watch for Ethereum Classic to print a bullish reversal candlestick, such as a doji or hammer candlestick, above that trendline to suggest a bounce is in the cards.
- If Ethereum Classic breaks up from the triangle and regains the eight-day exponential moving average as support, the bear flag will be negated. In that case, a new uptrend could be confirmed if Ethereum Classic prints a higher high above Tuesday’s high-of-day.
- Ethereum Classic has resistance above at $20.46 and $24.58 and support below at $15.27 and $10.
See Also: Bahamas Arm Of Cryptocurrency Exchange FTX Files For Chapter 15 Bankruptcy: What It Means For Creditors