Can Ethereum Classic’s Golden Cross take ETC’s price to $40?

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  • ETC hit its highest price in over six months.
  • It has continued to trend upward after hitting a critical price level.

As a seasoned crypto investor with battle-scarred fingers from countless market ups and downs, I must admit that Ethereum Classic (ETC) has caught my attention lately. After six months of stagnation, its recent surge to $33.20 is nothing short of impressive.

Ethereum Classic (ETC) has been drawing attention lately following its successful “Golden Cross,” a well-known technical signal that typically predicts a bullish trend. Many investors view this event as a potential catalyst for significant price increases in the near future.

As the pace of ETC’s price increase accelerates, there is growing discussion among traders and analysts about whether this signals the beginning of a prolonged upward trend or merely a short-term high followed by a downturn.

Examining the Golden Cross and technical indicators

At the moment, the value of Ethereum Classic has climbed to $33.20, buoyed by a rising optimistic outlook among investors. This optimism is mirrored in the chart’s dynamic movements, with the Bollinger Bands suggesting an increase in volatile price swings moving upward.

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Currently, the Relative Strength Index (RSI) is showing a value of 70.45, suggesting the asset might be approaching overbought conditions. If buying activity subsides, there may be a pause or correction in the market trend, but if the rally continues to be fueled by strong demand, it could persist.

The MACD graph displayed a persistent rise, and its histogram consistently had green bars, suggesting that the market’s positive trend was still strong.

In simpler terms, since the MACD was close to its highest point, it signaled that traders might want to keep an eye out for a possible decrease in momentum over the short period ahead.

Social sentiment and network activity

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As a researcher, I’ve noticed an escalating curiosity surrounding Ethereum Classic, evident by the significant surge in its social volume as reported by Santiment. This spike in social activity was particularly noticeable in November. Although there has been a slight dip more recently, it remains notably higher compared to other months, indicating a sustained interest in this asset.

Historically, periods of high social media discussion tend to coincide with increased trading activity. This pattern suggests that there’s a significant level of interest among both individual (retail) and professional (institutional) investors at the moment.

Analysis of on-chain data provides a deeper understanding. A surge in transaction numbers and active users suggests greater engagement with the network, lending credence to the notion that underlying actions are fueling the price rise.

However, sustaining these levels will be crucial for ETC’s long-term growth prospects.

Will ETC’s rally last or fade?

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While the Golden Cross is a bullish signal, caution is warranted. The combination of an overbought RSI and approaching critical resistance levels ($35–$37) could lead to profit-taking. If ETC fails to break above this range, a pullback to the $28–$30 level is plausible.

Conversely, should ETC continue its current pace, it could potentially reach $40 – an important psychological threshold. Reaching this level would necessitate sustained buying activity and additional backing from the blockchain.

Furthermore, similar to Ethereum Classic (ETC), Ethereum [ETH] has yet to experience the Golden Cross, which lends an interesting advantage to ETC’s argument. Nevertheless, it’s worth noting that Ethereum has maintained a higher value and demonstrated a more robust momentum in recent times.

– Realistic or not, here’s ETC market cap in BTC’s terms

The Golden Cross on Ethereum Classic suggests an optimistic outlook, yet various indicators depict a more intricate situation. Although the asset shows significant growth potential, it’s crucial to consider hints of potential consolidation or temporary decline as well.

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2024-12-01 07:03