One of the altcoins that made gains in a week when cryptocurrencies were calm. Ethereum Classic (ETC) it happened. ETC has been among the assets that have been on the rise in the last few days, but this rise may be short-lived.
ETC managed to stay ‘green’ from May 21 to May 24 with the effect of the strong accumulation recorded over the weekend and recorded an increase. ETC rallied from below $20 to a weekly high of $25.69 before meeting some resistance. Note that the $25 price range has previously acted as a support range and it is quite common to see support zones turn into resistance zones.
In the case of ETC, the $25 price range could mark a relief zone for the bulls and provide an important resistance level. After the mini rally, there was a 5.23% correction in the price and regressed to $22.49.
When Ethereum Classic indicators are examined in more detail, it is seen that the price has shown a resistance and the RSI has triggered a pullback by staying at ‘neutral’ levels. The MFI, on the other hand, is currently pretty close to the 80 cap and potentially showing signs of a comeback. These indicators are in line with the expectations of some exits during the downtrend.
The current expectation is that more bearish strength will force the MFI to seek more downsides. Also, +DI and -DI seem to be interacting at the moment as the price is facing a directional momentum change. Digging further reveals that ETC’s 50-day MA has recently rebounded below the 200-day MA due to bearish market conditions over the past few weeks.
A Closer Look at Ethereum Classic
Both Binance funding rate and FTX funding rates dropped significantly during the trading session on May 25. The metrics reflect the downward pressure on Ethereum Classic’s price action, highlighting the waning interest from the derivatives market over the past two days.
ETC priceThe rise seen in the last few days reflected the increasing trade volumes as of May 21. There was a slight increase in the supply of Ethereum Classic held by whales over the weekend as a result of the bullish performance. The volume metric also recorded increased activity, but the volume seems to have cooled slightly during printing.
It is quite uncertain how much the price will decrease as a result of the correction in the price due to market uncertainties. However, we may see a price retest below $20 and it could be lower in case of a significant distribution. ETC’s short-term performance looks bearish, but its long-term outlook is still bullish considering the massive bearish.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.