Ethereum Classic bulls eye $23.8 amid short-term volatility fears

• Ethereum Classic regained its bullish market structure on the daily after a 20% rally
• Liquidity levels indicate that a pullback below $20 is likely before a move beyond $22

Ethereum Classic [ETC] has performed well since the 4th of November. Alongside Bitcoin [BTC], the altcoin has posted 19% gains since the lows of that day at $17.29.

Despite the recent gains, it was still unable to rise beyond the local highs at $21 that have opposed the buyers since August. Will this move be different?

Accumulation indicator shows breakout is likely

Source: ETC/USDT on TradingView

The market structure had turned bullish on the daily chart earlier this week after the move beyond the recent lower high at $19.82.

The A/D indicator was in a steady uptrend since August, while the price formed a range between $17.6 and $21.

With the sentiment across the crypto space growing increasingly bullish, ETC is likely set to break past the $21 level. The Fixed Range Volume Profile showed that the $21 level was a stern resistance.

It formed the lower band of the value area, where 70% of the trading volume since April has taken place. Breaking into the value area has been a challenge.

The 50 and 100-period moving averages formed a bullish crossover, another sign that an uptrend is increasingly likely.

The next significant resistance zone beyond $21 was at $23.8. A bearish order block and a high-volume node were both present in this area.

Short-term sentiment favors ETC bulls

Source: Coinalyze

The Open Interest surged from $86 million on the 6th of November to $98.3 million at press time, while the price rallied 20%. This showed bullish sentiment amongst speculators.

The spot CVD also climbed higher in recent days, showcasing demand in the spot markets.

Source: Coinglass

Read Ethereum Classic’s [ETC] Price Prediction 2024-25

The ETC liquidation map showed that a retracement to $19.61 and $19.37 would cause a high volume of long liquidations. To the north, relatively smaller liquidity pools were present, up to $21.99.

Since liquidity attracts prices, ETC might witness a dip below the $20 mark to trigger these long liquidations in the coming days.

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