Ethereum Classic (ETC) has been showing significant price movements recently, signaling a possible change in market dynamics.$ETH
While the golden crossover seen in exponential moving averages (EMAs) offers a positive outlook for ETC in the medium term, Bitcoin’s performance still continues to play a critical role.
Industry experts note that the sustainability of Ethereum Classic’s rally largely depends on Bitcoin’s strength and the overall market sentiment, COINOTAG reported.
In this article, we will examine the recent price increase of Ethereum Classic, its market trends, and the implications of its relationship with Bitcoin.
Ethereum Classic has recently shown remarkable price growth, peaking at $27 on November 17. However, the resistance encountered at this level creates some uncertainty about the sustainability of price movements due to volatile market conditions. Consolidation at this price level may indicate indecision among investors or a potential exit.
Recent technical indicators suggest that Ethereum Classic is in a bullish trend. In particular, a golden crossover where the 20-day EMA crosses over the 50-day and 200-day EMAs is generally considered a bullish signal that foreshadows an upward movement in price. As of now, the altcoin is trading at $25.46 and is down 2.68% in the last 24 hours. Traders are closely watching the critical resistance areas at $27.38 and $29.78.
In the Ethereum Classic derivatives market, open interest data presents a mixed picture. Open interest decreased by 4.56% to $148.63 million, while trading volume decreased by 14.03%, dropping to $338 million. This indicates that market activity has decreased and there is uncertainty about whether bullish sentiment will continue.
The long/short ratio across all exchanges was recorded at 0.8577, indicating a general bearish trend in the market. However, some exchanges such as Binance and OKX offer a more optimistic outlook with ratios of 2.11 and 2.7 respectively, indicating that a group of investors still expect upward pressure on ETC. In particular, the increase in open positions observed among leading traders points to a potential divergence in market sentiment.
The relationship between Bitcoin’s price action and Ethereum Classic is an important factor. As Bitcoin approaches overbought levels, there is increasing curiosity about how these market dynamics will affect Ethereum Classic’s movements. If Bitcoin continues its bullish trend, Ethereum Classic could break the $27 resistance and head towards $30. Otherwise, a possible pullback in Bitcoin could send Ethereum Classic back to the $21-$22 support levels.