Ethereum Classic Price Forecast: Analyzing the Likelihood of ETC Reaching $20 Once More
Ethereum Classic (ETC) has faced a challenging period for holders and investors in recent months. The market structure has shown some positive signs, but the overall trend has not been favorable for buyers. Short-term sentiment has been bearish, weakening spot buyers as well.
On Friday, 23 August, Ethereum Classic managed to surpass the $20 mark. There were optimistic expectations for the token, but a correction in Bitcoin’s price below $60,000 led to a shift in market sentiment. To maintain its bullish outlook, Ethereum Classic needs to defend the nearby support levels at $18.3 and $17.68. Despite a surge in buying pressure indicated by a volume indicator, questions remain about whether this is sufficient.
While Ethereum Classic exhibited a bullish market structure on the daily chart by breaking the recent lower high at $20.07, the trend has been bearish since May. The moving averages have not yet signaled a bullish crossover for an uptrend, and the token faced rejection from the 50-day moving average recently.
Although the Chaikin Money Flow (CMF) indicated significant capital inflows at +0.09, Ethereum Classic was trading below its 20-period Simple Moving Average (SMA). This situation suggests a potential bearish move, prompting caution among bulls who may prefer to wait for clearer market conditions.
In the short term, Ethereum Classic struggled to breach the $19 level and instead moved closer to $18, leading to a drop in Open Interest from $71 million to $65 million, indicating bearish sentiment. The funding rate also leaned slightly bearish, reinforcing expectations for a bearish trend in the Futures market. Spot traders showed reluctance to buy ETC, with the spot Cumulative Volume Delta (CVD) trending downwards.
In conclusion, the outlook for Ethereum Classic in the coming days is likely to be sideways or downward. It’s essential to note that the information provided is the writer’s opinion and does not constitute financial, investment, or trading advice.
