Ethereum Classic was sliding lower on Wednesday, in tandem with Bitcoin and Ethereum.
The crypto may be settling into a bear flag pattern on the daily chart, with a measured move of 33%.
During Wednesday's 24-hour trading session, Ethereum Classic ETC/USD -3.60% + Free Alerts was losing roughly 3% of its value due to cascading worries related to the FTX disaster.
Due to "severe market disruption and lack of industry trust induced by the FTX implosion," Genesis Global Trading's lending division temporarily halted redemptions and the beginning of new loans on Wednesday, according to DCG Vice President Amanda Cowie.
Following FTX's bankruptcy and claims that the company's founder and CEO, Sam Bankman-Fried, had committed fraud, sentiment in the industry rapidly turned sour.
Ethereum ETH/USD -3.41% + Free Alerts dropped over 4%, while Bitcoin BTC/USD -2.29% + Free Alerts dipped below Tuesday's low-of-the-day.
While consolidating over the previous week, Ethereum Classic, like much of the cryptocurrency market, may be poised to make another significant rise.
The daily chart of Ethereum Classic shows that the cryptocurrency has formed a triangular shape as a result of its consolidation within a narrowing sideways range. The pattern suggests that Ethereum Classic may be printing a bear flag pattern when coupled with the 33% fall that took place between November 6 and November 9.
The calculated move indicates that Ethereum Classic could fall to $15 if the lowest ascending trendline of the triangle is broken down bearishly. On Friday, the cryptocurrency is expected to reach the triangle's apex. Traders and investors can determine the direction of the market by looking for a breakout or decline from the pattern on higher-than-normal volume.
The lower declining trendline of a falling channel pattern that Ethereum Classic has been trading in since August 13 may provide support if it loses its bear flag. If that occurs, bullish traders can keep an eye out for Ethereum Classic to print a bullish reversal candlestick above that trendline to indicate a bounce is in the cards.
The calculated move indicates that Ethereum Classic could fall to $15 if the lowest ascending trendline of the triangle is broken down bearishly. On Friday, the cryptocurrency is expected to reach the triangle's apex. Traders and investors can determine the direction of the market by looking for a breakout or decline from the pattern on higher-than-normal volume.
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