Is HODLing the way ahead for Ethereum Classic?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ETC’s demand fell, stalling Ethereum Classic’s trend reversal.
- Declining OI highlighted bearish dominance.
Despite its non-inclusion in the ongoing regulatory inquest into cryptocurrencies, Ethereum Classic [ETC] has struggled to shake off its bearish swing. A 24% price drop on 10 June saw ETC sink to a year-low of $12.64. However, price rallied quickly before stabilizing at the $15 price zone, as of press time.
Realistic or not, here’s ETC’s market cap in BTC’s terms
Price bounce has no impact on bearish dominance
ETC’s month-long sideways move ended on 5 June with bears prevailing to flip the $17.66 support to resistance. A quick retest of the new resistance level saw further downward movement on 10 June, with ETC hitting July 2022 lows.
The move on 10 June created a price imbalance with a sharp reversal from the $13.31 support level. ETC’s press time price action suggested the imbalance had been filled before either another upward or downward move.
The Relative Strength Indicator (RSI) pushed out of the oversold zone and climbed above neutral 50 between 11 June and 18 June. However, it has failed to push on, hinting at diminishing buying pressure. The On-Balance Volume (OBV) hasn’t recovered after a sharp drop on 10 June, with its flatlined movement suggesting faltering demand for Ethereum Classic.
In the short term, a push for the $16 price zone could yield decent traction for bulls. Although, this will need to be supported by a significant increase in the daily trading volume. Alternatively, sellers could play the long game before further price dips.
Open Interest declined despite short-term price bounce
The futures market’s quiet reaction to the price bounce from the $13.31 support level wasn’t good news for bulls. Data from Coinalyze on the four-hour timeframe showed that the Open Interest (OI) declined slightly, despite the price rebound.
Read Ethereum Classic’s [ETC] Price Prediction 2023-24
This hinted at a lack of interest by market speculators in a price rally for Ethereum Classic.
Similarly, Spot CVD maintained its steep downtrend to highlight the waning demand for ETC. Furthermore, the Funding Rate flashed positive and negative, signaling uncertainty for ETC’s next move.