Ethereum Classic reclaims $16: Will traders go long?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ETC mounted above a sticky hurdle in September.
- The Futures market was bullish; more players shorted the asset.
Ethereum Classic [ETC] was ecstatic to extend its September recovery gains to October. It rallied +10% from 26 September and traded at $16.48 at press time. The rally cleared a sticky roadblock at $16 and could offer buyers more benefits if Bitcoin [BTC] doesn’t post immediate losses.
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Can bulls extend the rally?
Price chart indicators were bullish on the asset on the H12 timeframe at press time. Notably, the RSI steadily increased and hit the oversold entry point, denoting the spike in buying pressure since late September.
In addition, the CMF also forayed above zero, albeit sluggishly, denoting slow but steady capital inflows into the ETC market over the same period.
The price rally cleared the sticky resistance zone of $15.58 – $16.00 (cyan), flipping the H12 market structure to a bullish bias.
So, the next target for bulls is the roadblock at $18 if they clear the immediate $17 hurdle. Such a move could present a potential 4.6% or 10% gain at $17 and $18, respectively.
A slip below the September resistance zone of $15.58 – $16.00 (cyan) will invalidate the bullish thesis.
The Futures market flashed mixed signals
At press time, ETC’s Futures market flashed conflicting signals. Notably, more players were shorting the asset on the daily timeframe for the past few days, as shown by the ETC Long/Short Ratio. It meant that they expected prices to drop in the near future.
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However, the Open Interest rates and trading volume were bullish. Both metrics were up +180% and +10%, respectively, at press time. It denotes a demand and trading activity spike in the past 24 hours before press time.
So, the conflicting signals call for tracking of BTC price action for clear market direction and risk mitigation.