Ethereum Classic [ETC] rejects key demand zone – Is a short squeeze next?

• Ethereum Classic has surged 8% after rebounding from a key $17 demand zone, at press time.
• A liquidation pool at $21.27 might drive the altcoin prices up as bullish momentum accumulates.

The world of cryptocurrencies has been fluctuating, following the recent remarks from the United States President, Donald Trump, indicating the importance of crypto reserves.

The statement has drawn controversy over digital assets as a key money-making tool, propelling further interest in the world’s best-known cryptocurrencies, including Ethereum Classic [ETC].

Against this profit-taking period backdrop, ETC is showing signs of bullish strength after the rejection of a key demand zone at around $17.

The altcoin has already surged 8% and a huge weekly liquidation pool at $21.27 could act as a price magnet, taking prices even higher.

Source: TradingView

ETC surges after a key demand zone rejection

ETC price action shows strong buying pressure, with an 8% surge after rejection from the $17 demand zone.

This reflects a sentiment shift, as investors anticipate further price appreciation and bet on the altcoin’s bullish momentum.

A 273K ETC liquidation pool at $21.27 strengthens the bullish outlook, acting as a magnet for price action. With leveraged traders positioned at this level, liquidations could trigger further buy orders, potentially driving ETC higher.

Source: Coinglass

Liquidity bias adds more weight to the bullish momentum

ETC’s bullish momentum aligns with market liquidity dynamics, with liquidation pools creating self-fulfilling price action as investors hedge positions.

ETC’s move toward the $21.27 level could bring higher volatility, potentially inducing a short squeeze and significant price gains.

Key indicators like the RSI nearing oversold regions support the case for further upside in ETC’s price action.

The recent surge in Ethereum Classic suggests strong bullish momentum, signaling the potential for further upward movement.

The $21.27 liquidation pool strengthens the bullish outlook, making it an important level to monitor for investors. With on-chain metrics affirming the uptrend, ETC is positioned for additional gains soon.