Ethereum Classic: Should ETC investors hold this coin for the long term?
Disclaimer: The following analysis is the sole opinion of the writer and should not be considered investment advice.
- The moving averages present a strong selling advantage when the price action is near the support area.
- The Ethereum Classic funding rate shows a slight improvement but has yet to turn positive.
After a strong uptrend for over a month, the Ethereum Classic (ETC) price has been relatively low for the past two months. The resurgence of selling has brought the altcoin below the daily 20/50/200 EMA to indicate a strong bearish threshold.
ETC price prediction for 2023-2024
Altcoin posting times are moving towards the confluence of the trend support line (white, dashed) and the horizontal base line could prevent a red candle streak in the coming sessions.
At writing time, the altcoin is trading at $24.23, up nearly 13.86% over the past 24 hours.
Could a death crossover at the EMAs set the stage for the bears?
ETC has marked a non-linear ROI above 240% from its mid-July low. As a result, it hit a 4-month high on Aug. 13.
Over the past two months, ETC has accelerated the selling pressure and correlated with the decline of Bitcoin during the same period. This return to selling helped the bears find a close below the 20/50/200 EMA.
Meanwhile, the long-term trendline support (yellow, dashed) and the $23 base line coincide and provide a recovery foundation for ETC.
However, with the recent crossover at the 50/200 EMA, the bears will attempt to maintain their advantage. A close above the 20 EMA could help buyers retest the $30 top before a logical reversal.
If broader market conditions continue to propel the bearish story, a slide below the $23.1 fundamental level will expose ETC to significant downside risk. In these cases, sellers can aim to test the first major support at the $19 area.
Additionally, Chaikin Money Flow (CMF) publishes a lower low to confirm a bullish divergence with price action.
Funding rate improved but still negative
An analysis of the historical ETC funding rates over the past week across various exchanges shows that sentiment remains in favor of sellers.
At press time, rates remain negative across all exchanges. However, over the past 24 hours, these readings have steadily increased. Continuing to tilt to the positive zone could help ETC generate short-term gains.
With a combination of multiple crypto support levels coupled with a bullish divergence on the CMF, ETC could see a short-term resurgence before falling back on its bearish path. The goals will remain the same as discussed.
Ultimately, broader market sentiment and other on-chain developments will play an important role in influencing future moves.
Oct 15, 2022