Ethereum Classic saw its bulls regaining market control since ETC bottomed during mid-June sessions. They confirmed their presence within the past seven days as the alternative token presented a massive upside. Nevertheless, ETC flashed bearish signals during this publication.
ETC’s recent rally emerged on July 13 when the alt climbed from the $13.34 day’s low. That saw the crypto delivering stable bullish surges. Ethereum peaked beyond $19 over the past few hours of this publication, translating to a nearly 50% surge. However, several signals suggest the upside steam is about to calm.
Ethereum Classic Signals
While publishing this blog, ETC changed hands around a FIB retracement mark. Extended upward will likely trigger substantial selling momentum around the $20.19 mark. This area remained crucial as a Fibonacci retracement mark and served as a support zone in May.
Moreover, the Money Flow Index enhanced the reversal possibilities as it dipped into an overbought region. Also, the Relative Strength Index nears the overbought level, though not there yet.
The Directional Movement Index highlights bullish trends as the +DI recorded an enormous upswing. The latest bullish wave pushed the altcoin beyond the 5-day MA indicator. Prices have hovered below this area since April 2022.
Ethereum Classic uptrends will likely trigger sell strength as some investors look to book profits. Moreover, on-chain indexes like whale supply confirm such tendencies. This metric has declined by 0.45% since July 13, suggesting profit-taking by some whales following the latest rally.
Ethereum Classic has retained massive uptrends regardless of whale outflows. That shows the alternative token has witnessed impressive retail demand. Also, its volume metric displayed an immense surge within the past 24 hours, translating to monthly highs as the volume peaked at $886.98 million.
Final Thought
Ethereum Classic will finally capitulate as large wallet addresses withdraw their bulls’ support. Though enough demand could limit declines, investors should consider the massive selling potential behind ETC.
The latter could catalyze substantial pullbacks for ETC. Moreover, crypto traders and investors should watch broad market sentiments for money-making moves. That would help identify invalidation levels.