Connect with us
Active Currencies 13535
Market Cap $2,784,751,387,143.20
Bitcoin Share 49.92%
24h Market Cap Change $1.77

Ethereum Classic’s 40% bearish correction from March peak reveal increased…

2min Read

Share this article

Ethereum Classic has been on a shark bearish trajectory for almost four weeks and it managed to extend its downside by 40% on 25 April from its latest local top. ETC’s bearish pullback started after its 29 March peak which concluded an impressive bull run from mid-March.

ETC dipped as low as $31.38 in the last 24 hours of 25 April, at which point its retracement reached 40% from the March high. A noteworthy performance because it crossed below the 61.8% Fibonacci retracement line. However, it has so far registered some upside and is currently trading at $32.79.

Source: Santiment

The 61.8% Fibonacci retracement line aligns with the $33.35 price level which has previously been tested as a support and resistance level.

It is thus possible that it might also act as Ethereum Classic’s next trend reversal zone, especially after a 40% retracement. Such a significant pullback is eventually bound to experience trend exhaustion.

Will ETC reverse near its current price zone?

While ETC’s current performance suggests the likelihood of a reversal at the 61.8% Fibonacci level, on-chain activities offer more clarity. Ethereum Classic’s total supply held by whales metrics registered a noteworthy uptick between 23 and 24 April.

The total supply held by whales went up from 51.69% to 52.11%, hence a substantial accumulation.

Source: Santiment

The Binance futures funding rate metric shifted from negative to positive between 17-25 April. While it does not directly mean that the price will go up, it highlights increased long positions in the derivatives market. This means derivatives investors are shifting to a bullish sentiment as the price continues to go down.

If ETC achieves a bullish reversal, it will likely encounter some friction near the $37 which is the mid-point between the 61.8% and 38.2% Fibonacci retracement lines.

A strong upside move would likely encounter support at $40 which sits on the 38.2% Fibonacci line. A bearish performance will find support near the $28 price level which overlaps with the 78.6% Fibonacci line.

Share

Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.