Key Insights:
- Ethereum Classic (ETC) has surged about 16% in the last 24 hours, but the price stays confined to a liquidation cluster between $22 and $24.
- This was after the Ethereum Classic price broke a long-term downtrend line in December 2024. The momentum indicator was at 6.30, confirming the 7-month confinement of price action.
- Large transactions have also spiked in the last 24 hours. Has ETC finally flipped bullish?
Ethereum Classic (ETC) rose by 16% in the last 24 hours at the time of writing, putting it among the day’s top performers. The L1 chain has failed to ape its counterpart, the biggest altcoin, Ethereum (ETH) in terms of price and value.
However, the altcoin is showing good signs at a period when most alts are performing, but begs the question if this strength can be maintained? Again, what is behind this surge?
Dense Liquidation Cluster Confining ETC Price
To begin with, liquidity played a mjor role as price was confined between two key price levels with massive clusters of positions.
The $22 and $24 acted as price magnets with the upper band having more volume than the lower one, thus pulling the price towards it.
Meanwhile, the lower band was forming as the price advanced higher, a potential zone where longs could be scooped. Additionally, they could be targets for shorts that can be taken at the $24 zone.
With the price continuing its confinement between these two ranges, a clear picture of the structure could reveal more about the ETC.
Ethereum Classic Breaks Long-Term Trendline
The chart of Ethereum Classic showed that ETC gained 16 percent as it traded at $23.96. This followed an uptrend in price over its downtrend line. The trendline had restrained price for seven months since December 2024.
The pattern of the price movement affirmed a resistance to support movement at the level of $21.50.
The momentum oscillator (MOM) order of 7.02 represented the strong bullish pressure. This corroborated that an upward movement could be possible.
The ongoing breakout is a positive step, since the price has passed through some important resistance. This was catalyzed by the increasing interest in the altcoin sector and broader speculation markets.
Nevertheless, it is advisable to stay careful since the rally may encounter some difficulties on higher levels. These could be particularly around the area of $26, which if broken, the next problematic area would be $30 and eventually $40.
The recent rise of Ether Classic reflected a bigger movement within the cryptocurrency industry but what else could have sparked it?
Large Transactions Rising
Last but not least, Ethereum Classic was seeing massive on-chain activity from major participants. ETC witnessed a significant spike in big volume transfers in the past 24 hours, with more than seven transfers in total surpassing 100,000 ETC.
The biggest transfer was 720396.075 ETC valued at about $15 at the time of writing as withdrawn from a Binance wallet to a deposit address. Other large amounts of 167 998.045441 ETC and 123,338. 639 ETC at the expense of active institutional interest followed.
Additionally, other transactions involved 121,189.451 ETC and 114,904.732 ETC, confirming a high movement in the exchanges, especially Binance.
The rising number of major transactions might indicate that ETC was getting bullish momentum. This was by considering that chain activity usually correlates with rising prices witnessed in most markets.
Such a huge shift was a sign of trust in the price perspective of ETC. This would further position ETC to rise higher if the same continued.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
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