Ethereum Classic (ETC) finds itself at a critical juncture in its price action. Over the past 48 hours, the altcoin has experienced an 8% decline, bringing it to a crucial support level within a symmetrical triangle formation.
This scenario could potentially set the stage for a forthcoming reversal, particularly in the midst of a notable uptick in whale activities and social prominence.
Record-High Social Dominance for ETC
The social dominance of ETC has reached unprecedented levels since July 14th and appears to be on the rise. These spikes in visibility signify a growing interest and engagement from the community, a trend that has historically been linked to price movements.
Given that market sentiment plays a significant role in the crypto space, the surge in social prominence for ETC may indicate a shift in momentum.
The convergence of robust technical levels and this social buzz holds particular significance.
Source: Santiment
Institutional Interest Indicated by Whale Activity
In conjunction with the escalating social buzz, there has been a noticeable rise in whale activity within the ETC market. The proportion of the total supply controlled by whales holding over 5 million ETC has climbed to an impressive 58%.
Accumulation by major market players often precedes significant price movements. The expansion of whale positions reflects confidence in ETC’s potential to break out of its ongoing consolidation phase and potentially reverse its recent downward trend.
Source: Santiment
Potential Breakout Suggested by Symmetrical Triangle
ETC’s price has been consolidating within a symmetrical triangle pattern—a formation renowned for signaling potential breakouts in either direction—since August 24th.
With the price hovering around a critical support level near $18, the next move could dictate whether Ethereum Classic will see an upward bounce or continue its descent.
Nevertheless, with both the surge in social dominance and whale activity indicating bullish trends, ETC might be gearing up for an upward reversal.
If the support level holds, ETC could rally to break out of the pattern and aim for higher price ranges.
Source: Tradingview
With the surge in whale and social activities pointing upwards, Ethereum Classic appears primed for a potential shift in trend.
While no pattern guarantees a breakout, the indications suggest a growing bullish sentiment.