The cryptocurrency Ethereum Classic (ETC) has been gaining momentum lately, experiencing a significant price increase after a recent dip. Investor sentiment seems to be turning positive again after a period of decline, not just for ETC but also for other major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Positive On-Chain Data for Ethereum Classic
As the market recovers, Ethereum Classic has seen a remarkable 22% increase, attracting interest from long-term holders who see the potential for further upside momentum in the near future.
Data from Coinglass shows that exchanges have witnessed a massive outflow of ETC worth $22.85 million. This movement suggests a possible uptrend and a good opportunity for holders as the assets transition from exchanges to long-term wallets, indicating accumulation.
Besides long-term investors, traders are also showing growing interest in the token. Coinglass reports that the long/short ratio for ETC currently stands at 1.019, indicating a strong bullish sentiment among traders.
Price Analysis and Future Outlook for Ethereum Classic (ETC)
Recently, Ethereum Classic retested its breakout level and the 200 Exponential Moving Average (EMA) on the daily chart, signaling a bullish trend.
Technical analysts have observed a bullish hammer candlestick forming at a critical support level of $26.70, with the price finding further support at the 200 EMA.
If ETC manages to close a daily candle above $28.50, there is a high likelihood that it could advance by 20% and reach the next resistance level at $34.25 in the days ahead.
Furthermore, ETC’s Relative Strength Index (RSI) is currently hovering near oversold territory, indicating a potential for upward movement.
Considering the on-chain data and technical analysis, it appears that the bulls are in control of Ethereum Classic and could drive the price towards the $34 threshold soon.
As of now, ETC is priced around $27.54, registering a 13.5% surge in the last 24 hours. However, the trading volume has decreased by 30% during the same period, suggesting reduced participation from traders and investors.