Ethereum Classic: Will ETC bull win in short term?
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Disclaimer: The following analysis is the sole opinion of the author and should not be considered investment advice.
- Ethereum Classic (ETC) is showing a trend reversal off the 200 EMA.
- The rate of raising altcoins has increased slightly in recent days.
After a relatively bright week for the bulls, buyers intensified their efforts to push Ethereum Classic (ETC) towards resistance at the 200 EMA (green).
The sell-off at this barrier has resurfaced, sending the altcoin below the 20-hour SMA to show easy near-term buying power.
The altcoin's reversal from $25.52 created a series of red candlesticks, marking the next drop. Alt can be forced into an upcoming session. At press time, the altcoin is trading at $24.22, down nearly 3.85% over the past 24 hours.
Can ETC get short-term bullish?
ETC has dropped more than 46.8% after bouncing off highs of $38.5 in mid-September. As a result, it hit a two-month low on October 13.
Over the past few days, ETC has entered high volatility after breaking out of the support of the $21 region. This return to buying helped the bears find a close below the 20/50 EMA on the 4-hour time frame.
Meanwhile, the gap between the 20 EMA (red) and the 50 EMA (cyan) has created a bullish crossover to represent short-term price gains.
Currently, this altcoin can find immediate support in the $22.5-$24.2 range in the near term. In this case, any bounce could see a bounce towards the $25.5 zone. Any bearish crossover at the 20/50 EMA could hinder the chances of a strong rally.
If broader sentiment replicates bullish strength, the altcoin is likely to see a retest of the $25.5 top in an instant. A close above this resistance will confirm a solid shift in short-term momentum in favor of the buyers.
ETC Funding rates improved
An analysis of financial interest rates shows rather bullish gains for buyers in recent days.
These rates struggled to stay in the positive territory as they continued their uptrend. Any close above zero will confirm a buying advantage. This advantage could help the bulls defend the immediate support on the chart.
But open rates across all exchanges over the past 24 hours have fallen by more than 6.2% compared to the past day. The corresponding decline in price action has highlighted an advantage for the bears.
Ultimately, broader market sentiment and on-chain developments will be important in influencing future moves.
Oct 28, 2022