Ethereum Classic (ETC), a cryptocurrency often overshadowed by its larger counterpart Ethereum, has been on a steady rise, fueled by a bullish crypto market led by Bitcoin’s impressive run. But as ETC approaches the critical $30 resistance level, questions arise: Can it sustain this momentum, or will the bears regain control?
ETC recently hit its six-month high, trading at around $25.46 after a strong upward trajectory over the past few weeks. This rise was largely supported by an ascending channel pattern, a technical setup that historically signals a potential reversal in price trends.
Currently, ETC’s price hovers near $25, experiencing a slight dip of 2.68% over the past 24 hours. The cryptocurrency has formed a series of higher highs and higher lows, reflecting a positive sentiment among traders. However, despite multiple attempts, the $27-$30 range has proven to be a formidable resistance zone.
The technical outlook for ETC remains optimistic. The 20-day Exponential Moving Average (EMA) recently crossed above the 50-day and 200-day EMAs, a bullish signal that often indicates strong upward momentum.
However, the Relative Strength Index (RSI), a measure of market sentiment, sits at 64, suggesting slightly overbought conditions. A decline in RSI towards the 50 mark could indicate a short-term correction, giving traders a chance to reassess their positions.
If ETC maintains its current channel, the price could retest the $29-$30 range in the coming days. Conversely, a break below the lower trendline might see ETC finding support near the $23 level.
Market data provides an interesting snapshot of trader sentiment. Open Interest, which reflects the total number of active contracts in the market, dropped by 4.56% to $148.63 million, alongside a 14.03% dip in trading volume to $338 million. This suggests reduced activity in the short term.
Meanwhile, the Long/Short ratio—a metric indicating the balance between bullish and bearish bets—shows mixed results. Across all exchanges, the ratio leans bearish at 0.85, but platforms like Binance and OKX report more optimistic figures of 2.11 and 2.7, respectively.
Notably, top traders on Binance have maintained a bullish stance, with a Long/Short ratio of 2.1 for accounts and 1.2 for positions. This indicates that leading market participants remain confident in ETC’s upward potential.
As Bitcoin continues its remarkable bull run, its influence on the broader crypto market cannot be ignored. ETC, like many altcoins, often mirrors Bitcoin’s price action.
If Bitcoin sustains its upward momentum, ETC could break past the $27 resistance and aim for the coveted $30 level. On the other hand, if Bitcoin shows signs of slowing down, ETC may face increased selling pressure, potentially revisiting the $21-$22 range.
For now, Ethereum Classic’s near-term potential hinges on several factors:
In the long run, Ethereum Classic’s role as a proof-of-work blockchain and its historical ties to Ethereum could keep it relevant in the crypto space. For now, the focus remains on whether ETC can break its current resistance and establish new highs.
Pankaj is a skilled engineer with a passion for cryptocurrencies and blockchain technology. With over five years of experience in digital marketing, Pankaj is also an avid investor and trader in the crypto sphere. As a devoted fan of the Klever ecosystem, he strongly advocates for its innovative solutions and user-friendly wallet, while continuing to appreciate the Cardano project. Like my work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9
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