- ETC’s market structure was bullish at press time
- Momentum and volume indicators turned bearish on the charts though
Ethereum Classic [ETC] retested the $25-support level and nearly flipped its higher timeframe market structure bearishly. This came after an unfavorable U.S May Jobs Report. Its short-term momentum seemed bearish too.
In a recent report, AMBCrypto noted that the $28.4-$29 zone could be revisited before a bounce. Ethereum Classic dropped more than expected. Ergo, the question – How do traders react to the recent price action?
The $29-support level did not hold
Source: ETC/USDT on TradingView
The recent higher low was set at $25.19 on 13 May. The price drop on 7 June, touched $25.07, but did not close a daily session below $25.19. Hence, the bulls seemed to have the upper hand on the higher timeframe, though it appeared tenuous.
The Directional Movement Index saw the -DI (red) jump above the 20-mark. It was an early sign that the trend could be shifting bearishly, as the ADX (yellow) would also need to climb past 20 to signal a strong downtrend in progress.
The CMF was at -0.09, indicating significant capital flow out of the market. This selling pressure has been present for a week. It would need to turn around for bulls to regain some hope.
Futures market highlighted intense bearishness
Source: Coinalyze
Over the past 10 days, Ethereum Classic has steadily risen from $31 to $28.6. The past 24 hours saw a flurry of selling activity spurred by Bitcoin [BTC] though. Hence, ETC fell by 14.32% in a single 4-hour trading session, followed by a bounce from $25.07 to $27.
Read Ethereum Classic’s [ETC] Price Prediction 2024-25
The Open Interest also fell sharply alongside the price, showing bearish sentiment and a reluctance to enter positions due to volatility. The spot CVD continued its downtrend too. The volume indicators agreed that selling pressure was firm.
The bulls would need to change this to re-establish an uptrend on the lower timeframes.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
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