Journalist
Posted:
- Ethereum Classic regained its bullish market structure on the daily after a 20% rally
- Liquidity levels indicate that a pullback below $20 is likely before a move beyond $22
Ethereum Classic [ETC] has performed well since the 4th of November. Alongside Bitcoin [BTC], the altcoin has posted 19% gains since the lows of that day at $17.29.
Despite the recent gains, it was still unable to rise beyond the local highs at $21 that have opposed the buyers since August. Will this move be different?
Accumulation indicator shows breakout is likely
Source: ETC/USDT on TradingView
The market structure had turned bullish on the daily chart earlier this week after the move beyond the recent lower high at $19.82.
The A/D indicator was in a steady uptrend since August, while the price formed a range between $17.6 and $21.
With the sentiment across the crypto space growing increasingly bullish, ETC is likely set to break past the $21 level. The Fixed Range Volume Profile showed that the $21 level was a stern resistance.
It formed the lower band of the value area, where 70% of the trading volume since April has taken place. Breaking into the value area has been a challenge.
The 50 and 100-period moving averages formed a bullish crossover, another sign that an uptrend is increasingly likely.
The next significant resistance zone beyond $21 was at $23.8. A bearish order block and a high-volume node were both present in this area.
Short-term sentiment favors ETC bulls
Source: Coinalyze
The Open Interest surged from $86 million on the 6th of November to $98.3 million at press time, while the price rallied 20%. This showed bullish sentiment amongst speculators.
The spot CVD also climbed higher in recent days, showcasing demand in the spot markets.
Source: Coinglass
Read Ethereum Classic’s [ETC] Price Prediction 2024-25
The ETC liquidation map showed that a retracement to $19.61 and $19.37 would cause a high volume of long liquidations. To the north, relatively smaller liquidity pools were present, up to $21.99.
Since liquidity attracts prices, ETC might witness a dip below the $20 mark to trigger these long liquidations in the coming days.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
