- The price of ETC has fallen by double digits over the past week.
- Despite the price drop, the bullish momentum remains.
After rallying after ETF approval, Ethereum Classic [ETC] has started losing its profits. AMBCrypto reported rather those Ethereum-linked tokens ETC and Ethereum Name Service [ENS] rose to a 12-month high following the long-awaited ETF decision on January 10.
At the time of writing, ETC was exchanging hands at $23.90, down 19% in the past week, data from CoinMarketCap showed.
The bullish momentum continues
The price increase of ETC following the adoption of the ETF was supported by no real increase in demand for ETC. As the excitement surrounding the ETF has waned, the coin has witnessed a decline in value.
However, despite the recent price decline, a review of ETC’s price movements on a daily chart showed that bullish momentum continued. At the time of writing, the coin’s momentum indicator was above their respective midlines, indicating that buying pressure was outweighing the coin sell-off.
Furthermore, the coin’s Chaikin Money Flow (CMF) returned a value above the zero line. When an asset’s CMF value rises above zero, it indicates the presence of increased buying pressure.
At 0.06 and in an uptrend at the time of writing, ETC’s CMF showed increasing liquidity being supplied to the coin’s spot market. This is known to increase the value of an asset.
Measurements of ETC’s Directional Movement Index (DMI) showed that the positive directional index (green) rested above the negative directional index (red), confirming the bullish trend.
When these trend lines are positioned this way, it suggests that the strength of the bulls is greater than that of the bears.
Source: ETC/USDT on TradingView
However, the price decline over the past week has resulted in a decline in the open interest on ETC futures. According to data from Mint glassSince January 12, ETC’s open interest has fallen 22%.
At the time of writing, the coin’s open futures interest was $162.34
Volatility continues to linger in the market
The increase in the ETC price following the adoption of the ETF led to a sharp increase in market volatility.
With the gap between the upper and lower bands of the coin’s Bollinger Bands (BB) indicator still widening at the time of writing, ETC remained sensitive to price fluctuations.
Source: ETC/USDT on TradingView