Disclaimer: The information presented does not constitute financial, investment, trading or other advice and solely reflects the opinion of the author.
- ETC bounced off a crucial long-term support.
- Demand in the derivatives market was subdued.
Ethereum classic [ETC] bounced off the critical long-term support of $14.7-$16.2 (Cyan). The support zone has led to three consecutive price rallies. However, the recent recovery could face significant headwinds.
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In the meantime, Bitcoins [BTC] The recovery has been blocked at $26.8k and it could sink to $26k before attempting another upleg.
The hurdles of ETC recovery
Source: ETC/USDT on TradingView
As the daily chart above shows, the cyan support zone led to a rebound in January, March and June. So, it is a crucial long-term support that has seen huge demand whenever price action has tested it again.
However, the expected fourth recovery could be delayed and stalled by obstacles. The CMF was above the zero threshold, which means there were significant capital inflows.
But the RSI had not breached the 50 median level, suggesting improved, but not as strong, buying pressure at the time of writing.
The first hurdle for ETC bulls is the price imbalance and the FVG (fair value gap) of $16.7-$17.4 (white). Additionally, there is a prior support and resistance zone of $17.8-$18.6 (red) above FVG.
Thus, the recovery towards the psychological $20 level has important hurdles that could derail the bulls.
Subdued demand on the futures market
Source: Coinalyze
Demand for ETC has been bleak in the futures market as shown by Open Interest (OI). The OI measures open contracts, capturing demand, liquidity and overall market sentiment.
To read ether [ETC] price prediction 2023-24
Notably, the metric posted a solid rebound after falling mid-August.
Additionally, funding rates have fluctuated as the CVD (cumulative volume delta) declined slightly, further confirming muted demand and a lack of bullish advantage in the market. Therefore, the recovery could face challenges.
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