Since November 4th, Ethereum Classic [ETC] has shown a strong performance. Like Bitcoin [BTC], this alternative coin has seen an increase of 19% from the lows of $17.29.
Despite the recent upsurge, it has struggled to surpass the local peak at $21, which has been a barrier for buyers since August. Will this latest movement break through?
Signals Point Towards a Potential Breakout
The market outlook turned positive on the daily chart earlier this week following a move above the recent high of $19.82.
The A/D indicator has been on a consistent upward trend since August, while the price has fluctuated within the range of $17.6 to $21.
Amidst the growing optimism in the cryptocurrency market, the chances are high that ETC will surpass the $21 level. The Fixed Range Volume Profile data indicates that $21 stands as a strong resistance point.
This level marks the lower boundary of the value area, which has accounted for 70% of the trading volume since April. Breaking through this zone has proven to be a challenge.
Additionally, a bullish crossover has been observed between the 50 and 100-period moving averages, signaling a probable uptrend.
A significant resistance area beyond $21 lies at $23.8, where a bearish order block and a high-volume node are both present.
Short-Term Sentiment Favors ETC Bulls
The Open Interest spiked from $86 million on November 6th to $98.3 million currently, coinciding with a 20% price surge. This hints at a bullish sentiment among traders.
Furthermore, the spot CVD has shown an upward trend in recent days, indicating a rise in demand in the spot markets.
An analysis of the ETC liquidation map highlights that a pullback to $19.61 or $19.37 could lead to a significant number of long liquidations. On the upside, smaller liquidity pools extend up to $21.99.
Given the relationship between liquidity and price movement, ETC may experience a decline below the $20 mark to trigger long liquidations in the near future.
Disclaimer: The information provided is purely the writer’s opinion and should not be considered as financial, investment, or trading advice.