Ethereum Classic would have been a healthy choice if you were on the hunt for a bullish cryptocurrency this week. ETC is among the few cryptocurrencies that have experienced significant upside in the last few days but its rally might be short-lived.
ETC achieved 4 consecutive green daily candles from 21 May to 24 May, thanks to strong accumulation during the weekend. The ETC bears pushed ETC from sub-$20 prices to a weekly high of $25.69, before encountering some resistance. Note that the $25 price range previously acted as a support range, and it is quite common to see support zones turn into resistance zones.
In ETC’s case, the $25 price range seems to be yielding significant resistance, marking a relief zone for the bulls. It experienced a significant downside at press time, with the price dipping to $22.49 after a 5.23% correction in the last 24 hours.
Source: TradingView
A closer look at ETC’s indicators reveals that the price experienced resistance and a retracement right on the RSI’s neutral line. The MFI is currently near the 80 upper limit and is currently showing signs of a potential reversal. This aligns with the expectations of some outflows during a bearish retracement.
The current expectation is that more bearish strength will force the MFI to seek more downside. It also looks like the +DI and -DI is currently interacting, as the price encounters a directional momentum change. Zooming out further reveals that ETC’s 50-day MA recently reversed back below the 200-day MA due to the bearish market conditions in the last few weeks.
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