Ethereum Classic (ETC): Analyzing Near-Term Potential Amid Bitcoin’s Bull Run

Amid Bitcoin’s historic bull run, Ethereum Classic (ETC) has seen significant upward momentum, reaching a 6-month high on November 17. However, the altcoin faces critical resistance at the $27 level, despite testing it multiple times in recent days. As bullish indicators emerge, ETC’s near-term performance could depend heavily on Bitcoin’s price movements.

Recent Price Action and Technical Analysis

ETC is currently trading within an ascending channel pattern, a structure known for its potential near-term reversals. Over the past weeks, ETC has charted higher highs and higher lows, reinforcing its bullish trajectory.

As of press time, ETC was trading at $25.46, down 2.68% over the last 24 hours. A key bullish signal emerged with the 20-day EMA crossing above the 50-day EMA and the 200-day EMA, with values at $22.95, $21.05, and $21.57, respectively.

However, resistance zones at $27.38 and $29.78 continue to challenge buyers. If the current upward channel holds, ETC could aim for the $29-$30 range. A breakdown below the channel, however, may see prices retreat to near-term EMA levels around $23.

The Relative Strength Index (RSI) stands at 64, suggesting slightly overbought conditions. Any dip in RSI could trigger a short-term correction toward the 50-mark, signaling more balanced market dynamics.

ETC Derivatives: Insights from Market Data

In the derivatives market, ETC saw a 4.56% decline in Open Interest, which now stands at $148.63 million. Trading volume also fell 14.03%, reaching $338 million, reflecting lower market activity.

The 24-hour Long/Short ratio stood at 0.8577, indicating a slight bearish tilt. However, data from Binance and OKX painted a more optimistic picture, with Long/Short ratios of 2.11 and 2.7, respectively, suggesting traders on these platforms maintain bullish sentiment.

On Binance, top traders exhibited a bullish stance, with a Long/Short account ratio of 2.1 and a position ratio of 1.2, showing confidence in ETC’s potential for upward movement.

The Role of Bitcoin in ETC’s Future

Bitcoin’s recent surge to overbought levels could significantly influence ETC’s near-term trajectory. If Bitcoin’s momentum persists, ETC may breach the $27 resistance and target the $30 zone. Conversely, a slowdown in Bitcoin’s rally might result in ETC pulling back toward the $21-$22 range.

Conclusion: Eyes on the $30 Target

Ethereum Classic’s current position highlights a pivotal moment for the altcoin. With a golden cross on EMAs and strong market support, ETC’s medium-term prospects remain promising. However, traders must closely monitor Bitcoin’s performance, as its price action will likely play a decisive role in ETC’s ability to break through critical resistance levels.

For now, ETC remains a coin to watch as it attempts to capitalize on Bitcoin’s bullish momentum and chart its course toward the $30 milestone.