Ethereum Classic (ETC) has reached a major technical milestone by forming a Golden Cross, sparking speculation among investors about its increasing bullish potential.
While the Golden Line has historically signaled upward momentum, this strong technical signal raises questions about whether ETC can sustain its recent price rally. “The Golden Line usually encourages investors to consider long positions,” one analyst told COINOTAG, underscoring the growing market interest.
Ethereum Classic forming this Golden Line could signal the start of a new bullish period, and technical indicators raise some questions about the stability of the price.
When Ethereum Classic reached $33.20, the markets were clearly bullish. The Golden Line, formed when the 50-day moving average crosses the 200-day moving average from above, is generally considered a strong bullish signal. This technical indicator suggests that ETC’s price action could be entering an upward trend.
The Bollinger Bands are showing widening volatility, which suggests that the asset’s price action could continue in a positive direction. On the other hand, the Relative Strength Index (RSI) has reached 70.45, giving a warning that ETC could be entering overbought territory. If the buying pressure does not continue, a correction is possible.
Moving Average Convergence Divergence (MACD) indicators also confirm the bullish sentiment. The appearance of solid green bars is a sign of positive momentum. However, the MACD indicator is approaching its peak, which suggests that traders should be careful, as this could mean that the momentum is weakening.
Social media sentiment around Ethereum Classic has increased significantly, according to Santiment’s latest analysis. This increase suggests that market interest is also increasing and that it is gaining attention from investors. An increase in discussions on social media usually leads to an increase in trading volume.
On-chain metrics are also showing a significant increase. The increase in transaction volume and active addresses on the Ethereum Classic network suggests that the network is seeing increased usage, contributing to the ETC price rally. However, sustaining high levels of activity will be critical to long-term success.
Despite the positive signals from the Golden Line, it is important to remain cautious. The RSI reaching the overbought level and the critical resistance levels around $35–$37 suggest that profit-taking strategies may come into play. If ETC struggles to overcome this resistance level and pulls back, a correction to $28–$30 is possible.
However, if ETC can sustain its momentum and reach the $40 target price, it could become one of the leading cryptocurrencies by market cap. Reaching this target will require not only strong buying pressure but also support from on-chain indicators.
On the other hand, Ethereum (ETH) has yet to form a Golden Line, which highlights the trending differences between the two assets. While Ethereum has a higher market cap, Ethereum Classic’s recent bullish indicators suggest that it could gain significant momentum if trends continue.