It does NOT evolve through leveling up. It evolves when you expose it to a particular evolutionary stone. It evolves when you expose it to a "Dusk stone".
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Misdreavus doesn't evolve
Misdreavus does NOT evolve by leveling up. If you want your Misdreavus to evolve you must expose it to a Dusk Stone and it becomes into a Mismagius.
You cannot evolve Misdreavus in Crystal.
Well in the 4th gen Pokemon games if you use a dusk stone on misdreavus it will evolve to mismagius.
You can use a dusk stone to evolve a Misdreavus. The best time to do this is when it reaches level 41.