Key Takeaways
The short-term resistance at $24 has been flipped to support, but the trend of Ethereum over the coming days could dictate how prices behave and whether its rally can extend beyond the $24.7 resistance.
Ethereum Classic [ETC] managed to rally strongly on the 22nd of August, following Ethereum’s [ETH] 15% move higher. ETC gained 24.3% from Friday’s low at $20.53 to reach $25.52 later in the day.
Over the past 12 hours, the bulls were forced to retreat slightly.
Source: Coinalyze
Futures data showed that speculators maintained their bullish conviction. Open Interest rose 23% in the past 24 hours despite the price dip from $25.5.
Funding Rate was also firmly positive, but the spot CVD continued to trend downward.
This was a worry, since it reflected a lack of buying pressure in the spot market. Would this be enough to derail the recent ETC move higher, or should traders and investors expect more gains?
Ethereum Classic leaves some questions to be answered
Source: ETC/USDT on TradingView
Weekends generally see low trading volume and generally do not see strong moves initiated. At the time of writing, Ethereum Classic had retested the $24.7 horizontal resistance.
This level had been a significant obstacle to the bulls in July.
It could be too big an obstacle once again, but the evidence showed otherwise. The MFI was bullish, and the CMF was at +0.14 to reflect heavy buying pressure. Additionally, the strength of Ethereum could help ETC.
In recent weeks, a strong ETH move has been followed by Ethereum Classic on the price charts. Any consolidation or retracement for ETH leads to a larger sell-off for ETC.
Hence, if Ethereum can climb higher in the coming days, Ethereum Classic bulls might have a good chance of rallying past $24.7.
A drop below $23.5 would flip the short-term bias bearishly for ETC.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
