Ethereum Classic [ETC] Price Analysis: Bulls Need to Defend $18.3 and $17.68 Support Levels

Ethereum Classic [ETC] managed to climb past the $20-level on Friday, 23 August. There were bullish expectations for the token, but Bitcoin's [BTC] correction below $60k saw a market-wide sentiment shift.

Cryptocurrencies experienced a market-wide sentiment shift on Friday as Bitcoin’s [BTC] correction below $60k was felt across the board. However, Ethereum Classic [ETC] managed to climb past the $20-level on Friday.

There were bullish expectations for the token, but Bitcoin’s [BTC] correction below $60k saw a market-wide sentiment shift. Still, ETC may have had bullish hopes if it can defend the $18.3 and $17.68 support levels that were close by.

In fact, a volume indicator highlighted a surge in buying pressure. But, was that enough?

Bullish structure, bearish trend

At press time, the higher low at $18.3 was not broken yet. However, since May, the trend has been bearish.

The moving averages indicated the same thing. They had not yet formed a bullish crossover to indicate an uptrend. Additionally, ETC faced rejection from the 50-day moving average a week ago.

The CMF was at +0.09 to indicate sizeable capital inflows, but the token was trading beneath its 20-period SMA. Bulls need to be careful of another bearish move and could opt to wait for clearer conditions instead.

Short-term outlook not favorable for ETC bulls

Over the past three days, Ethereum Classic has struggled to breach the $19 level and has crept closer towards $18 instead. This saw the Open Interest drop from $71 million to $65 million, outlining bearish sentiment.

The funding rate had been slightly bearish during this time, reinforcing the bearish expectations in the Futures market. The spot traders were not keen on buying ETC either, and the spot CVD has trended south since.

Overall, the trend of the next few days is likely to be sideways or downwards.

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