warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice
- The moving averages showed a strong selling advantage as the price action approached the support area.
- Ethereum Classic funding rates have shown a slight improvement but are not yet positive.
After a sharp upward trend of more than a month, Ethereum Classic [ETC] The price has been relatively lackluster in the last couple of months. Renewed selling pulled the altcoin below the daily 20/50/2002 moving average to reveal a strong bearish edge.
This is the AMBCrypto price prediction for Ethereum Classic [ETC] for the year 2023-24
Crypto at press time is trending towards confluence of trendline support (white, dashed) and the horizontal baseline may stop the red candles line in the upcoming sessions.
At the time of publishing this report, the altcoin is trading at $24.23, up nearly 13.86% over the past 24 hours.
Could EMA’s death cross set the stage for bears?
Source: TradingView, ETC / USDT
ETC reported a non-linear ROI of more than 240% from its mid-July low. As a result, it reached its highest level in four months on August 13.
Over the past two months, ETC has increased selling pressure and correlates with Bitcoin’s decline over the same period. This sell back helped the bears find a close below the 20/50/200 EMAe.
Meanwhile, the long-term trendline support (yellow, dashed) and the baseline at $23, coincided with the recovery of ETC.
However, with the recent death cross at the 50/200 EMA, the bears are aiming to maintain their edge. A close above the 20 EMA could help buyers retest the $30 ceiling before a reasonable reversal.
If broader market conditions continue to fuel the bearish narrative, a dip below the $23.1 baseline would expose ETC to significant downside risks. Under these circumstances, sellers can try to test the first major support level in the $19 region.
In addition, Chaikin Money Flow (CMF) made higher lows to confirm bullish divergence with price action.
Funding rates have improved, but are still negative
Source: Coinglass
An analysis of the ETC funding price history over the past week across various exchanges shows that sentiment remains slightly skewed in favor of sellers.
At the time of writing, the price is negative on all exchanges. However, over the past 24 hours, these readings showed a steady increase. A persistent bias in the positive territory could help ETC generate gains in the short term.
Given that the cryptocurrency confluences multiple support levels along with a bullish CMF divergence, ETC could see a recovery in the near term before pulling back into its bearish groove. The objectives will remain as discussed.
Finally, broader market sentiment and other developments in the chain will play an important role in influencing future movements.