- ETC expects a rally as bullish momentum increases.
- Short position takers dominate 54.6% of the market supply, but increasing social activity could tip the balance.
Ethereum classic [ETC] has captured the market’s attention as its structure indicates potential upside momentum.
Ethereum Classic’s is showing an encouraging uptrend according to the daily chart, although it is currently in a retracement phase.
This pullback to the local support level provides an excellent opportunity for the bulls to intervene and push the price back up.
Zooming in on the 4-hour chart, ETC is starting to gain bullish momentum, indicating a potential breakout is on the horizon.
Source: Tradingview
Social dominance is increasing
A key metric supporting this positive outlook is Ethereum Classic’s social dominance. According to our analysis of the Santiment data, ETC’s social dominance currently stands at 2.07% and is steadily increasing.
Social dominance is a key determinant of market sentiment, and its upward trend is often associated with price increases.
As more eyes turn to ETC, this activity could theoretically lead to a well-fueled upward move, pushing it much higher.
Source: Santiment
ETC short traders still rule the market
Interestingly, 54.6% of the Ethereum Classic market is currently controlled by short position takers.
A short position at this high position only shows that many traders expect a price drop. However, if ETC continues to build on its bullish momentum, a short squeeze could occur, which could drive prices higher.
Source: Coinglass
ETC whales in motion
Complementing the positive sentiments mentioned earlier, whale activity has increased dramatically since October 9. The percentage of whales with more than 5 million whales currently stands at 57%.
This suggests that if there is any movement of the whales, ETC could make a significant move.
Source: Santiment
Read Ethereum Classic’s [ETC] Price forecast 2024–2025
With social dominance increasing and a bullish bias visible on both the daily chart and the 4-hour chart, it looks like Ethereum Classic will witness a rally.