Exponential gains were made by Ethereum Classic (ETC) as it recovered from its long-term support area close to £10.9. The buying activity increased significantly once the altcoin finally crossed the £13.4 threshold last week.
The ongoing bullish revival resulted in ETC’s move above its 20/50/200 EMA. On the chart, the altcoin experienced a short-term setback from an up-channel breakdown.
The buyers may be able to maintain their momentum in the upcoming sessions with a bounce off the 38.2% Fibonacci support. ETC traded at £19.7 at the time of writing, down nearly 4.07% over the last 24 hours.
The price of ETC increased toward its two-month high on July 19 thanks to the recent 89.68% retracement. The bulls were able to close above both the near-term and long-term EMAs thanks to this uptick in buying.
ETC entered a period of high volatility over the past few days with the price recovering into an ascending channel. However, the recent gains were being restrained by the £20.9 resistance, so the bulls still needed to inject more buying volume.
The buyers could test the Point of Control by using the rebound from the 38.2% level. This could pave the way for a low volatility phase. Before making any trend-altering moves, ETC will try to retest the £21.4 zone if the sellers lose their energy.
Any decline in sentiment could cause bullish tendencies to weaken. To ward this off, the buyers had to target a position above the 20 EMA.
The Relative Strength Index (RSI) showed a little bullish edge and persistently kept its position above the midline. ETC might continue to experience short-term gains if the bulls maintain midline support.
However, when it fell below zero and confirmed a decline in money flows, the CMF painted a pretty bearish picture.
ETC could experience some gains if it maintains its recovery from the 38.2% support before levelling out close to the POC. The take-profit levels would be the same as before in this scenario. The asset would then probably have low volatility before a sudden break.