Ethereum Classic bulls look to initiate another rally, can they succeed

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• The bullish sentiment behind Bitcoin, if sustained, could aid ETC bulls.
• The structure of Ethereum Classic was bearish but chances of a recovery were there.

From 21 June to 24 June, Ethereum Classic [ETC] posted gains measuring 26.6%. The price rallied from $15.59 to $19.74 and showed that the short-term trend was bullish for ETC. Yet the price action of the altcoin could hinge on the performance of Bitcoin [BTC].

Read Ethereum Classic’s [ETC] Price Prediction 2023-24

Bitcoin surged from $26k to $31k over the past ten days as sentiment shifted bullish following the spot ETF applications from Blackrock. The most recent amended application came from ARK Invest – can this news bring another surge in BTC prices?

The Fibonacci retracement level has served as solid support for ETC

Source: ETC/USDT on TradingView

The breakout past the $15.55 resistance last week occurred on heightened trading volume. The Ethereum Classic’s move past $17 saw this volume increase massively. However, in the past four days the bullish momentum has begun to waver.

This showed that a pullback was around the corner. A set of Fibonacci retracement levels were plotted based on the rally. It showed the 50% and 61.8% retracement levels at $17.06 and $16.43. Hence, these are the short-term support levels ETC bulls can watch out for.

The RSI was at 48, showing neutral momentum. The CMF climbed past +0.05 to indicate rising capital flow into the ETC market. If Bitcoin can also climb back above the $31k mark, Ethereum Classic would likely follow. The 23.6% extension level at $21 presented a viable target. Meanwhile, invalidation would occur upon a drop below the $16.43 mark.

The spot CVD did not yet ascend despite the bounce in prices

Source: Coinalyze

On 28 June, roughly 20 hours before the time of writing, Ethereum Classic tested the 50% retracement level at 17.06. The prices have climbed higher since then. This was accompanied by a rise in the Open Interest as well.

How much are 1, 10, or 100 ETC worth today?

The OI rose by close to $5 million, indicating capital flow into the market and highlighted bullish short-term sentiment. Yet, overall, the OI remained in a downtrend over the past few days.

The spot CVD was also in a downtrend. If these metrics were flipped into an upward trend and ETC prices surged as well, it would be a strong sign of bullish intent.