What continues to drive the Ethereum Classic price rally?
|- Ethereum Classic price has reinitiated its rally after holding support at $32.
- Investors believe that ETC has a lot of room for growth before a significant reversal occurs.
- Ethereum Classic price needs to crack resistance at $40 to pave the way for another gigantic leap north.
Ethereum Classic price appears to be going against the grain of widespread market sentiment that it is primed for a significant correction by rising 6.5% in the last 24 hours. The bullish trend began on June 18 but took a breather on July 29. As reported last week, miners moving from Ethereum to Ethereum Classic ahead of the former’s transition from the proof-of-work (PoW) to a proof-of-stake (PoS) consensus, aka ‘the merge’ were the primary drivers of the rally.
To a great extent, Ethereum Classic price depends on the merge to keep the rally going, but the real question stands: Is the momentum sustainable? The token’s technical outlook is solid now, especially with support at $32 confirmed. On the upside, buyers are likely to channel their efforts to break the resistance at $40, a move likely to shape the subsequent recovery phase.
ETC/USD daily chart
Ethereum Classic price rally may be unstoppable
The daily Moving Average Convergence Divergence (MACD) crossed into the positive region on July 18, sending a bullish signal. As this upside movement continued, ETC eased through barriers such as $18, $24 and $30. Ethereum Classic will close the gap at $40 and make headway above the same level if this bullish outlook holds.
GloverFx agrees that Ethereum Classic price has not yet exhausted its rally. Via a Twitter post, the analyst pointed out a bullish reversal signal from the TD Sequential indicator. Moreover, ETH tested the downtrend line on the 1-hour Relative Strength Index (RSI)). Further analysis of the index showed that the price and the RSI had formed a bullish divergence on the 30-minute chart.
ETC/USD 30-min chart
Ethereum Classic’s Weighted Sentiment on-chain metric from Santiment has printed a bullish picture, as seen in the chart below. The metric combines positive and negative commentary surrounding ETC and multiplies the result with the total social volume.
Ethereum Classic Weighted Sentiment
Readings below the mean line indicate that the token is bullish. In other words, investors believe Ethereum Classic price is in a buy zone and are likely to buy for long-term holding rather than short-term speculation.
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