Against the backdrop of the recent surge in Bitcoin’s value, Ethereum Classic (ETC) experienced a notable uptick, reaching its highest point in six months on November 17th. However, despite these gains, ETC encountered difficulty breaking through the $27 threshold, facing repeated challenges in doing so over the past few days.
Recent Market Performance and Exponential Moving Average (EMA) Analysis
ETC exhibited an ascending channel pattern on its daily chart, a trend historically associated with near-term reversals. The altcoin demonstrated a pattern of successive higher lows and higher highs, reinforcing its upward momentum in recent weeks.
At the time of writing, ETC was trading around $25.46, reflecting a 2.68% decline in the last 24 hours. The 20-day EMA ($22.95) had surpassed both the 50-day EMA ($21.05) and the 200-day EMA ($21.57), signifying robust bullish momentum.
Despite this positive development, resistance levels at $27.38 and $29.78 posed challenges for prospective buyers.
If the current upward channel remains intact, ETC may revisit the upper boundary around the $29-$30 range. Conversely, a breach below the lower trendline could find immediate support near the short-term EMAs at approximately $23.
The Relative Strength Index (RSI) hovered around 64, indicating a slight overbought scenario. A potential downturn from this position could trigger a short-term correction towards the 50-point threshold, indicating a more balanced market sentiment. Buyers should monitor RSI movements for insights into potential corrective actions.
Insights from ETC’s Derivatives Market Performance
Overall Open Interest across various exchanges declined by 4.56% to $148.63 million, with trading volume also dropping by 14.03% to $338 million, reflecting decreased market participation.
Notably, the 24-hour Long/Short ratio stood at 0.8577, suggesting a bearish inclination. However, platforms like Binance and OKX displayed more optimistic ratios of 2.11 and 2.7, respectively, indicating positive trader sentiment on these exchanges.
Recent data on Open Interest from top traders on Binance indicated a bullish stance, with Long/Short ratios of 2.1 for accounts and 1.2 for positions. This trend suggests that prominent traders are positioning for further upward movement.
Nevertheless, Ethereum Classic’s short-term trajectory could be heavily influenced by Bitcoin’s recent price actions, particularly as BTC enters overbought territory.
If Bitcoin’s bullish run persists, ETC might successfully surpass the $27 resistance level and target the $30 zone. In contrast, a slowdown in Bitcoin’s momentum could lead to ETC retracing towards the $21-$22 range.