What awaits Ethereum Classic? [ETC] after approaching the Fib key. himself

By Sydney Barrett Last updated Aug 11, 2023

classic Ethereum [ETC] Since the mid-June bottom, the bulls have regained control. Its presence has been particularly noticeable over the past seven days as ETC price action has resulted in a strong rally. However, at the time of writing, there were signs of a bearish trend reversal following the recent rally.

The recent ETC rally started on July 13 from the daily low of $13.34. Since then, it has led to a sustained bullish rally. In fact, it has peaked at $19.92 in the past few hours at press time, meaning it is up almost 50%.

However, there appeared to be several signs that it might cool down soon.

sign of time

At press time, Ethereum Classic price was trading near the Fibonacci retracement level. Any further advance is likely to build significant selling pressure near $20.19. This is an important price point not only because of the Fibonacci retracement line, but also because the same price zone offered support in May.

The possibility of a trend reversal is further increased by the fact that the IMF has entered the overbought zone. Its RSI was also approaching the overbought zone, but was not there yet.

The Directional Movement Index +DI posted a strong rally. This confirmed that the general trend has now changed to an uptrend.

The recent upward pressure pushed the price above the 5-day moving average indicator for the first time since April 2022.

Source: TradingView

The ETC advantage is bound to result in some selling pressure as some traders try to cash in on some gains. This is already evident in some on-chain metrics, such as whale supply.

The latter is down 0.45% since July 13, suggesting some whales have benefited from the rally.

Source: Mood

Despite Whale address outflows, ETC has a strong lead. This is a sign that Ethereum Classic is seeing strong demand from the retail segment. The volume metric also saw a sharp increase over the past 24 hours, hitting an all-time high for the month with peak volume of $886.98 million.

diploma

ETC eventually capitulates when the whales withdraw their support from the bulls. However, while sufficient demand could cap the downside, investors should also watch out for strong selling pressures. The latter can trigger a significant pullback.

Source: ambcrypto.com