Imagine if the level of demand for a cryptocurrency could be measured by the strength of its rebound. Ethereum Classic was worth a look, especially after its 260% rally from its 2022 lows. The question, however, is: can it bring the same momentum into its next recovery phase?
Ethereum Classic’s price at press time of $ 32.91 represented a 27% drop from its last monthly high. This means it is still holding onto significant gains, compared to its June price action. The fact that ETC has only depreciated by a relatively small margin over the past 7 days could be a healthy sign of strength.
The latest downside of ETC led to a new test of support near the Fibonacci level of 0.5. The bears were experiencing friction near this level at press time, thus confirming a slowdown in selling pressure within the $ 32 price range.
Source: TradingView
While the Ethereum Classic print timeline seemed like a healthy bounce zone, there is a lack of clarity about the potential outcome. Its volume has decreased significantly in the past 24 hours, a sign of a lack of enthusiasm for investors.
The observation of the volume can also be interpreted as inaction by investors due to the uncertainty after the last decline. This is related to the increase in the percentage of stablecoin supply held by whales.
Source: Santimento
ETC whales cashed in when the price skyrocketed during its rescue rally. In fact, there is still a fair chance that the ETC will crash below its print time level.
Positive feelings have declined substantially in the past 48 hours, while negative ones have increased.
Source: Santimento
The observed change in sentiment means that the price action may lean more towards more selling pressure on the charts.
Conclusion
ETC metrics highlighted a significant level of uncertainty regarding short-term price action. However, the cryptocurrency market is subject to regular fluctuations and everything is still related. This means that ETC is still under the spell of general market sentiment.
ETH is still a healthy cryptocurrency to trade, especially this month. Its trading volumes have risen healthy over the past few months. This is probably why the Ethereum Merge hype is riding.