Ethereum Classic bulls want to start a new rally, can they succeed

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

• The bullish sentiment behind Bitcoin, if it continues, could help ETC bulls.
• Ethereum Classic’s structure was bearish, but the chance of recovery was there.

From June 21 to June 24, Ethereum Classic [ETC] recorded a gain of 26.6%. The price rose from $15.59 to $19.74 showing that the short term trend was bullish for ETC. Still, the altcoin’s price action may depend on Bitcoin’s performance [BTC].

Read Ethereum Classics [ETC] Price Forecast 2023-24

Bitcoin surged from $26,000 to $31,000 over the past 10 days as sentiment turned bullish following Blackrock’s mock ETF filings. The most recent amended filing came from ARK Invest – could this news trigger another surge in BTC prices?

The Fibonacci retracement level has served as solid support for ETC

Source: ETC/USDT on TradingView

The break past the USD 15.55 resistance last week occurred on increased trading volume. The movement of the Ethereum Classic past $17 saw this volume surge. However, in the past four days, the bullish momentum has begun to falter.

This showed that a relapse was just around the corner. A series 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. Therefore, these are the near-term support levels that ETC bulls can look for.

The RSI stood at 48 and showed neutral momentum. The CMF climbed past +0.05 to indicate increasing capital flows into the ETC market. If Bitcoin can also climb above $31k again, Ethereum Classic would likely follow suit. The extension level of 23.6% at $21 was a viable target. Meanwhile, invalidation would occur at a drop below $16.43.

The spot CVD has not yet increased despite the price increase

Source: Coin analysis

On June 28, about 20 hours before the time of writing, Ethereum Classic tested the 50% retracement level at 17.06. Since then, prices have risen higher. This was also accompanied by an increase in Open Interest.

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

OI rose nearly $5 million, indicating capital flow to the market and highlighting short-term bullish sentiment. Still, the OI has generally remained in a downward trend for the past few days.

The spot CVD was also in a downward trend. If these metrics were reversed in an uptrend and ETC prices were rising as well, it would be a strong sign of bullish intent.