Within the recent surge of Bitcoin, Ethereum Classic (ETC) witnessed a significant increase, reaching a six-month peak on November 17th. Despite these gains, ETC faced challenges breaking through the $27 barrier, a resistance point it repeatedly tested in the preceding days.
Recent Market Performance and Exponential Moving Average (EMA) Insights
ETC displayed an ascending channel pattern on its daily chart, a pattern historically associated with short-term reversals. The altcoin demonstrated a series of higher highs and higher lows, indicating its upward trend in the past few weeks.
As of the current moment, ETC was trading around $25.46, showing a 2.68% decrease in the last 24 hours. The 20-day EMA ($22.95) crossed above both the 50-day EMA ($21.05) and the 200-day EMA ($21.57), underlining a robust bullish momentum.
Despite these positive indicators, resistance levels at $27.38 and $29.78 remained challenging for buyers.
If the ongoing upward channel remains intact, ETC might retest the upper range near $29-$30. Conversely, if bears push the price below the lower trendline, immediate support could be found around the near-term EMAs at approximately $23.
The Relative Strength Index (RSI) was around 64, signaling slight overbought conditions. A potential decline from these levels could trigger a short-term correction towards the 50-mark, establishing a more balanced market environment. Buyers should monitor any RSI decline for insights into possible corrections.
Insights from ETC’s Derivatives Market
Across all platforms, Open Interest experienced a 4.56% decrease to $148.63 million. Likewise, trading volume dropped by 14.03% to $338 million, reflecting reduced market participation.
Of note, the 24-hour Long/Short ratio stood at 0.8577, indicating a bearish sentiment. However, Binance and OKX displayed more positive ratios of 2.11 and 2.7, respectively, suggesting a bullish outlook among traders on these exchanges.
There was a recent increase in Open Interest among prominent traders on Binance, showcasing a bullish sentiment with Long/Short ratios of 2.1 for accounts and 1.2 for positions. This highlighted that significant traders were positioning themselves for an upward trajectory.
Nevertheless, Bitcoin’s recent price movements could significantly impact ETC’s short-term performance, particularly as Bitcoin enters overbought territory.
If Bitcoin’s bullish trend persists, ETC might surpass the $27 resistance and target the $30 zone. Conversely, a slowdown in Bitcoin’s momentum could lead ETC to retrace towards the $21-$22 range.