Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
- Moving averages showed a strong selling advantage as price action approached a support region.
- Ethereum Classic funding rates showed a slight improvement, but have yet to turn positive.
After a steep uptrend for more than a month, Ethereum Classics [ETC] price has been relatively dull in the past two months. The revival in sales pulled the altcoin below the daily 20/50/200 EMA to reveal a robust bearish edge.
Here is AMBCrypto’s price prediction for: Ethereum Classic [ETC] for 2023-24
The altcoin’s press time is marching towards the confluence of trendline support (white, dashed) and the horizontal baseline could halt the streak of red candles in the sessions to come.
At the time of writing, the altcoin was trading at $24.23, up nearly 13.86% in the past 24 hours.
Could a death cross at EMAs set the stage for bears?
ETC marked a nonlinear ROI of over 240% from the mid-July lows. As a result, it reached its four-month high on August 13.
Over the past two months, ETC accelerated its selling pressure and correlated with Bitcoin’s decline over the same time. This selling comeback helped the bears find a close below the 20/50/200 EMAe.
Meanwhile, the long-term trendline support (yellow, dashed) and the $23 baseline coincided, providing a rallying ground for ETC.
However, with the recent death cross at the 50/200 EMA, the bears would try to maintain their lead. The close above the 20 EMA could help buyers retest the $30 ceiling before a plausible reversal occurs.
Should broader market conditions continue to fuel the bearish narrative, a drop below the $23.1 baseline would expose ETC to significant downside risk. In these circumstances, the sellers could try to test the first major support level in the $19 zone.
In addition, the Chaikin Money Flow (CMF) registered higher dips to confirm a bullish divergence with the price action.
Financing rates improved, but still negative
An analysis of the history of ETC’s funding rates over the past week on various exchanges revealed that sentiment is still slightly skewed in favor of sellers.
At the time of going to press, the share price was negative on all exchanges. However, over the past 24 hours, these measurements have shown a consistent increase. A sustained slope to the positive zone could help ETC gain short-term gains.
Given the confluence of multiple crypto support levels alongside the bullish divergence on the CMF, ETC could see a near-term rebound before falling back into its bearish track. The objectives would remain the same as discussed.
Finally, broader market sentiment and other developments in the chain would play a crucial role in influencing future movements.