Ethereum Classic: Will ETC’s range-low offer a new buying opportunity?
ETC took cue from BTC price action and struggled to reclaim its mid-range level. Will the range-low hold?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- ETC has been stuck in the lower price range since 15 July.
- Futures market volume has tanked massively, by 89%.
Ethereum Classic’s [ETC] registered a significant decline in demand in the futures market. A similar bearish sentiment on the spot market has prevailed since early July. The altcoin dropped from $23 on 1 July and traded below the $20 psychological level at the time of writing.
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After the retracement in early July, ETC entered a range formation within $18.5 – $20.3. But the price action has been restricted to the lower range of $18.5 – $19.5 since 15 July. In the same period, Bitcoin [BTC] struggled to clear its mid-range resistance level of $30.5k.
Will the mid-range block further upside?
Based on BTC’s extended range formation, we can infer that ETC took a cue from the king coin’s price movement. Notably, BTC has been faltering at $30.4 k, failing to cross its mid-range of $30.5k since 15 July.
Similarly, ETC failed to clear the mid-range and could force a retracement to the range-low of $18.5 if BTC failed to cross $30.5k. However, BTC hadn’t faltered below $30k and has seen sharp rebounds when it graced $29.5k.
If the trend repeats, ETC could rebound from its range-low and falter at $19.5 again. If that’s the case, a retest of range-low could offer new buying opportunities, targeting the mid-range.
But it’s worth noting that next week’s FOMC meeting (25/26 July) could spoil the party, especially if a potential +0.25% Fed rate hike jitters investors.
So, a bearish breakout will invalidate the bullish thesis. Such a move could be a retest of $18 or $17.5 feasible.
The Relative Strength Index (RSI) and Chaikin Money Flow (CMF) were above threshold levels. This suggested mild buying pressure and capital inflows at the time of writing.
Volumes in the futures market tanked
According to Coinglass, there was a massive decrease in ETC volume in the futures market. For perspective, the metric stood at $1.85 billion on 1 July when ETC traded at $20.93.
How much are 1,10,100 ETCs worth today?
However, the metric dipped to about $200 million at the time of writing. That’s a whopping 89% decline within about 20 days, underscoring the dip in demand for ETC in the same period.
In addition, longs were discouraged in the past 24 hours, per Coinalyze’s ETC liquidation data. It emphasizes how difficult crossing the mid-range of $19.5 could get unless BTC mounts above $30.5k.
