Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- ETC rose above a difficult hurdle in September.
- The futures market was bullish; more players shorted the asset.
Ethereum classic [ETC] was delighted when he was able to extend his recovery gains in September into October. It rose +10% from September 26 and was trading at $16.48 at the time of writing. The rally cleared a tough roadblock at $16 and could offer buyers more benefits if Bitcoin [BTC] does not record immediate losses.
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Can bulls extend the rally?
Source: ETC/USDT on TradingView
The price chart indicators at the time of writing were bullish on the asset in the half year 2012. Notably, the RSI rose steadily and reached the oversold entry point, indicating the peak in buying pressure since late September.
Furthermore, the CMF also moved above zero, albeit slowly, indicating slow but steady capital inflows into the ETC market over the same period.
The price rally has broken through the persistent resistance zone of $15.58 – $16.00 (cyan), pushing the market structure into a bullish bias in the second half of the year.
So the next target for bulls is the $18 roadblock if they overcome the immediate $17 hurdle. Such a move could yield a potential gain of 4.6% or 10% at $17 and $18, respectively.
A slip below the September resistance zone of $15.58 – $16.00 (cyan) will negate the bullish thesis.
The Futures market sent mixed signals
Source: Coinglass
At the time of writing, ETC’s futures market was sending conflicting signals. It was striking that there were more players short circuit the asset in the daily time frame for the past few days, as shown by the ETC Long/Short ratio. It meant that they expected prices to fall in the near future.
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However, open interest rates and trading volume were bullish. Both figures were up +180% and +10% respectively at the time of writing. It indicates a spike in demand and trading activity in the last 24 hours before going to press.
Thus, the conflicting signals call for monitoring BTC price action for clear market direction and risk mitigation.
