Home Markets Ethereum Classic [ETC]: When the next market phase arrives, ETC will be…

Ethereum Classic [ETC]: When the next market phase arrives, ETC will be…

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Ethereum Classic [ETC]: When the next market phase arrives, ETC will be…

Imagine if you could measure the level of demand for a cryptocurrency by the strength of its rebound. Ethereum Classic would have been worth looking at then, especially after its 260% rally from its 2022 lows. The question, however, is: can it maintain the same momentum in its next phase of reprise ?

Ethereum Classic’s press time price of $32.91 represented a 27% drop from its last monthly high. This means that it still holds strong gains, compared to its price action in June. The fact that ETC has only depreciated by a relatively small margin over the past 7 days could be a good sign of strength.

The latest ETC downside has resulted in a retest of support near the 0.5 Fibonacci level. The bears, at press time, were experiencing friction near this level, confirming an easing of selling pressure in the $32 price range.

Source: Trading View

Although Ethereum Classic’s press time position looks like a healthy bounce zone, there is a lack of clarity on the potential outcome. Its volume has dropped significantly over the past 24 hours – a sign of a lack of investor enthusiasm.

The sighting of volume can also be interpreted as investor inaction due to uncertainty after the latest decline. This correlates with the increase in the percentage of stablecoin supply held by whales.

Source: Santiment

ETC whales cashed in as the price soared during its relief rally. In fact, there is still a good chance that ETC will fall below its press time level.

Positive sentiment has dropped significantly over the past 48 hours, while negative sentiment has seen an uptick.

Source: Santiment

The shift in sentiment seen means the price action could lean more towards greater selling pressure on the charts.

Conclusion

ETC’s metrics have highlighted a significant level of uncertainty regarding near-term price action. However, the crypto-market is subject to regular fluctuations and everything is still correlated. This means that ETC is still under the spell of general market sentiment.

ETH is still a healthy crypto to trade, especially this month. Its trading volumes have grown healthily over the past few months. This is probably because he is riding the Ethereum Merge hype.

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