Ethereum Classic (ETC) enthusiasts were thrilled as the cryptocurrency continued its recovery from September into October. Starting on September 26, it embarked on an impressive rally, surging by 10% and reaching a price of $16.48 at the time of this report.
This surge successfully broke through a stubborn resistance level at $16, potentially offering even more advantages to buyers, provided that Bitcoin (BTC) doesn’t experience immediate losses.
Examining the price chart indicators on the H12 timeframe, the outlook appeared bullish. Notably, the Relative Strength Index (RSI) displayed a steady increase, reaching the oversold entry point, indicating a significant surge in buying pressure since late September. Furthermore, the Chaikin Money Flow (CMF) also ventured above zero, albeit at a gradual pace, signifying a slow but consistent influx of capital into the ETC market during the same period.
The rally effectively cleared the previously challenging resistance zone ranging from $15.58 to $16.00 (highlighted in cyan), consequently shifting the H12 market structure towards a bullish bias.
As a result, the next target for the bullish investors is the hurdle at $17, and subsequently, the roadblock at $18 if they successfully overcome the immediate $17 level. Achieving this could potentially yield gains of 4.6% at $17 and 10% at $18, respectively.
However, it’s crucial to note that a slip below the September resistance zone of $15.58 to $16.00 (highlighted in cyan) would invalidate the bullish outlook.
Turning our attention to the Futures market, there were mixed signals at the moment. Notably, on the daily timeframe, a larger number of participants had taken short positions on ETC in recent days, as indicated by the ETC Long/Short Ratio. This suggests an expectation of price declines in the near future.
Nevertheless, the Open Interest rates and trading volume provided a contrasting bullish picture, with both metrics experiencing significant increases of +180% and +10%, respectively, at the time of this report. These figures indicate a surge in demand and trading activity in the 24 hours leading up to the current moment.
In light of these conflicting signals, it is advisable to closely monitor the price movements of Bitcoin (BTC) for clearer market direction and to implement risk mitigation strategies accordingly.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.