Ethereum
Ethereum Classic [ETC] Defends Key Support Twice: $36 Next?
- The liquidation heatmap suggests that a reversal could be imminent for ETC.
- Defending the 78.6% retracement level encouraged the bullish sentiment.
Ethereum Classic [ETC] showed signs of long-term optimism. Its volume indicator has been trending upward since December 2023, signaling strong buying pressure.
On the other hand, recent losses have strained investor confidence.
With Bitcoin [BTC] At $66,000 at press time, short-term sentiment appeared to be in favor of the bulls. However, BTC is also showing significant resistance levels, and another correction cannot be ruled out.
Therefore, ETC holders should also prepare for a bearish scenario this summer.
Long-Term ETC Bulls Remain Confident
Source: ETC/USDT on TradingView
Fibonacci retracement levels (light yellow) showed that the 78.6% retracement level at $22.9 has been defended twice in 2024.
Additionally, the longer-term market structure remained bullish, with $18.33 as the key low to beat.
OBV has been trending upward over the past five months, showing stable buying volume. Therefore, even though the recent pullback was intense, it is likely that the bulls will prevail.
Conversely, since March, OBV has struggled to reach a new high.
Therefore, the purchasing volume was only slightly higher over the past month. Buyers still have to fight to regain the short-term uptrend. The $29 and $34.4 are the next key levels that bulls can claim as support.
The RSI remained below the neutral value 50 on the daily chart, signaling the persistence of bearish momentum.
Intense resistance above us: will we see a southward movement soon?
Source: Hybloc
AMBCrypto analyzed last month’s liquidation heat map. It showed two intense pockets of liquidation levels at $28.47 and $36. At press time, the $28 region was tested.
Read Ethereum Classic [ETC] Price prediction 2024-25
A sweep of the $28-29 zone before a bearish reversal towards $23.6 remained a possibility.
To the north, the next big pocket of liquidity at $36 was quite far away. Unless demand comes in and sentiment changes bullishly in the near term, traders should prepare for a rejection from the $29 resistance region.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.