The last two weeks have seen significant gains for Ethereum Classic (ETC), thanks to the bulls’ efforts to keep the price above £26.1. It was not until after they drove a rally as high as £36.6 that they faced rejection.
The Merge news was met with miners’ decision to switch to ETC, increasing the hash rate for the PoW coin. Although the price has risen since mid-August, it has not kept pace with the developments.
ETC continued to be in a long-term downtrend on the charts. The gains made in July and August failed to sufficiently fuel the price for it to break old highs, including those from last September.
Between these downward movements, there have been sizable rallies. ETC has seen swing highs of £55.7, £45.3, and £40.1 since November 2021.
The charts also showed that ETC was in a critical supply and demand zone. Since the start of 2022, the £30.5–£32.27 area has served as resistance. Additionally, a higher timeframe area of importance has been the £43.62.
Fibonacci retracement levels for the altcoin’s decline from £45.9 to £10.9 revealed the £38.4 and £32.5 levels as the 78.6% and 61.8% retracement levels. The price has adhered to these levels in recent weeks.
The signs suggested that ETC still had some bullishness. Despite the volatility over the previous two weeks, the RSI managed to maintain a reading above neutral 50. This meant that the bulls might continue to benefit from momentum.
On the other hand, the OBV was quite flat. It indicated that the volume of buying and selling over the last month nearly equalled and suggested that neither camp was in a position of superiority.
The CMF also found neutral ground, supporting the conclusion. Dropping below -0.05, it indicated a large capital outflow.
However, the DMI indicated an uptrend for the altcoin in September.
There was a lack of consistent, vigorous buying demand, according to the indicators. The Fibonacci retracement could serve as both support and resistance, with the £32.2 and £43.6 zones being especially important.