- ETC has been lodged in a lower price range since July 15, indicating a possible buying opportunity.
- The futures market volume for ETC has plunged drastically, experiencing an 89% decrease.
Recently, Ethereum Classic (ETC) has experienced a downturn in demand within the futures market, a sentiment mirrored in the spot market since the beginning of July. Following a descent from $23 on July 1, the altcoin now trades beneath the psychologically important level of $20.
Price Ranges and Potential Implications
In early July, ETC entered a range formation within $18.5 – $20.3 after a significant retracement. However, since July 15, the price movement has been confined to the lower range of $18.5 – $19.5. This period coincides with Bitcoin (BTC) struggling to breach its mid-range resistance level of $30.5k.
Looking at BTC’s protracted range formation, it seems plausible that ETC has mirrored the market leader’s price dynamics. BTC has been stumbling at $30.4k, unable to cross its mid-range of $30.5k since July 15. ETC exhibits a parallel pattern, failing to surpass the mid-range and potentially retracing to the range-low of $18.5 if BTC doesn’t break $30.5k. Nevertheless, BTC has consistently rebounded sharply from the $29.5k mark, without dropping below $30k.
If this trend repeats itself, ETC may bounce back from its range-low only to stumble at $19.5 once again. If so, a retest of the range-low could present new buying opportunities targeting the mid-range.
However, the forthcoming FOMC meeting on July 25/26 may disrupt this optimistic scenario, especially if a potential +0.25% Fed rate hike unsettles investors. If the market turns bearish, this could lead to a retest of $18 or possibly $17.5.
The Relative Strength Index (RSI) and Chaikin Money Flow (CMF) currently exceed threshold levels, indicating mild buying pressure and inflow of capital.
Significant Dip in Futures Market Volume
ETC’s futures market has witnessed a considerable drop in volume. According to Coinglass, the metric stood at $1.85 billion on July 1 when ETC was trading at $20.93. However, it has now plummeted to around $200 million, reflecting a striking 89% decline in just 20 days. This dramatic dip underscores the dwindling demand for ETC.
Moreover, data from Coinalyze’s ETC liquidation indicates discouragement among longs in the past 24 hours. This further highlights the challenging path to crossing the mid-range of $19.5 unless BTC manages to ascend beyond $30.5k.
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