Ethereum Classic [ETC] nears key roadblock — Is a reversal likely?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- ETC was headed to a crucial roadblock above $15.50 at press time.
- Funding rate fluctuations persisted, and the H12 market structure was still bearish.
Ethereum Classic [ETC] recorded a modest recovery in the second week of September. The altcoin was up 2% on weekly performance and traded at $15.39 at press time. However, the recovery was headed to a crucial roadblock and could attract sellers.
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Meanwhile, Bitcoin [BTC] was also facing a roadblock at the $27k mid-range. If BTC surges above the mid-range, ETC could clear this roadblock.
Can sellers exploit this roadblock?
The resistance zone and previously invalidated H12 bullish order block exists at $15.58 – $16.0 (red). The area has been a key hurdle in the first half of September and always led to a price rejection to $15.20 or $14.50.
If the trend repeats, ETC could head lower, presenting a shorting opportunity with a possible entry at $15.50 and take-profit at $15.20. Such a move could present short sellers with a 2% gain.
However, a close above $15.70 and a move beyond the roadblock at $16.0 will invalidate the short idea. Such an upswing will flip the H12 market structure to a bullish bias and tip bulls to target the $17 level after clearing the next hurdle at $16.11.
Meanwhile, the Relative Strength Index (RSI) crossed the median mark at press time but could see a reversal if sellers exploited the above roadblock. On the other hand, the Chaikin Money Flow (CMF) headed southwards towards the zero mark, indicating capital inflows eased in the past few days.
Funding rates fluctuated
According to Coinalyze, the ETC recorded fluctuating funding rates in the past few days, underscoring wavering sentiment. The Open Interest rates also wavered in the past two days, indicating demand fluctuated too.
How much are 1,10,100 ETCs worth today?
Besides, the Cumulative Volume Delta (CVD) retreated lower between 9-11 September and hasn’t fronted meaningful recovery. This shows that sellers couldn’t be overlooked as they still had market influence and could inflict a price reversal.