Ethereum Classic (ETC) Analysis: Bullish Long-Term Outlook Despite Potential Reversal
Ethereum Classic (ETC) Shows Signs of Long-Term Bullishness Amidst Recent Losses
Ethereum Classic (ETC) has been showing signs of long-term bullishness, with its volume indicator trending upward since December 2023, indicating strong buying pressure. However, recent losses have strained investor confidence.
The Fibonacci retracement levels have shown that the 78.6% retracement level at $22.9 was defended twice in 2024, with the higher timeframe market structure remaining bullish. The OBV has also been trending upward in the past five months, showcasing steady buying volume.
Despite the recent pullback, the bulls are expected to come out on top. However, the buying volume has only been slightly stronger in the past month, with the RSI remaining below neutral 50 on the 1-day chart, signaling bearish momentum.
On the other hand, the liquidation heatmap suggests a possible reversal, with intense pockets of liquidation levels at $28.47 and $36. At press time, the $28 region was being tested, with a potential bearish reversal towards $23.6.
With Bitcoin at $66k at press time, the short-term sentiment appears to be in favor of the bulls. However, significant resistance levels overhead for BTC could lead to another correction, impacting ETC as well.
In conclusion, while long-term ETC bulls remain confident, traders should be prepared for a possible bearish scenario this summer. The next key levels for the bulls to claim as support are $29 and $34.4, with intense resistance overhead at $36. Investors should stay vigilant and monitor market trends closely to make informed decisions.
