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ETC bulls could overcome the $21.79 hurdle if BTC traverses this path



ETC bulls could overcome the $21.79 hurdle if BTC traverses this path
Source: Pixabay

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • A retest of the overhead resistance at $21.79 was likely. 
  • A break below $19.95 would be an invalidation. 

After a 12% rally on 6 January, Ethereum Classic [ETC] got into the $19.95 – $21.77 range. ETC has been trading in the above range since 7 January. 

Read Ethereum Classic’s [ETC] Price Prediction 2023-24

At press time, ETC was trading at $20.52 and could retest the upper range boundary of $21.77 if the demand kicks in. Well, the CPI data will have an important role to play here. 

The U.S. CPI is commonly used to gauge U.S. inflation rates, and speculators were betting on a further decline of the same. 

The upper range boundary of $21.77: Is a retest likely?

Source: ETC/USDT on TradingView

The Relative Strength Index (RSI) overstayed in the overbought zone before it moved sideways. This showed that buying pressure dropped slightly, but bullish momentum was relatively strong. 

In addition, the Money Flow Index (MFI) rebounded from the midrange and showed that a significant distribution had taken place. 

Therefore, ETC bulls could attempt to retest the overhead resistance at $21.77 and go beyond, primarily if BTC aims at the $20K psychological mark. 

However, a break below $19.55 support would invalidate the bullish forecast. Such a move could see bears settle at the 61.8% Fib level of $19.09 or 100-period EMA of $18.76. 

ETC’s mining hashrate recorded an uptick while open interest declined

Source: Messari

According to Messari, ETC’s mining hash rates declined steadily from mid-December 2022 and bottomed out at the end of December. Afterward, it registered an uptick but has yet to reach the mid-December levels. 

Hashrate influences prices directly; thus, a massive drop or increase will lead to price rallies or drops, respectively. ETC’s declining hashrate from mid-Decemeber correlated with ETC’s price decline. 

At press time, there was an uptick in hashrate that could positively affect ETC price if the rise continues. 

Source: Coinglass

Is your portfolio green? Check out the ETC Profit Calculator

On the other hand, ETC’s open interest (OI) rate declined further as the coin moved sideways. It shows more flowed out of the futures market as ETC traders closed or liquidated their positions as ETC traded in a range. 

The hidden OI/price divergence could tip ETC for trend reversal. However, BTC’s price action could give investors more clarity on the next movement.  

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.