Ethereum Classic (ETC) Tumbles 10% in 24 Hours, Can It Recover?

Like most cryptos in the market, Ethereum [ETH] also fell victim to price corrections over the last 24 hours. In fact, ETH's latest dip pushed the token

After a slight price recovery earlier this week, most cryptocurrencies in the market faced another round of price dips on Friday. Ethereum [ETH], too, fell victim to these corrections as its price dropped by over 5% in 24 hours.

The altcoin’s latest dip pushed it towards a crucial support level on the charts. In the event of a successful test, what are the chances ETH will return to hit $3k again?

Ethereum’s latest supportAfter suffering losses of over 5% in 24 hours, ETH was trading just above the $2.5k mark at press time. A popular crypto analyst, Ali, shared a tweet highlighting an interesting observation.

According to Ali, ETH has managed to hold on to its support at $2.4k on multiple occasions in the past. However, recent price dips might once again push the altcoin towards that level.

Now, it is also important to note that ETH has been trading within an upward channel pattern since 2021. The token has tested this pattern multiple times now.

If history repeats itself, then it won’t be a long shot to expect the king of altcoins to move towards the $3k price point in the coming days. In fact, if things fall in place, then ETH might as well touch $4k in the coming months.

Chances of ETH touching $3kTo find out if ETH can start moving towards the $3k price point any time soon, AMBCrypto checked the token’s on-chain data.

Our analysis of Glassnode’s data highlighted that ETH’s price slipped under its possible market bottom at $2.58k. The Pi Cycle Top indicator suggested that ETH’s possible market top could be at $5.7k. Hence, expecting ETH to hit $3k won’t be too ambitious for investors.

Our assessment of CryptoQuant’s data also pointed out a few bullish metrics. For instance, ETH’s exchange reserve dropped, indicating buying pressure on ETH, which often leads to price upticks.

On the derivatives market front, everything seemed optimistic. ETH’s funding rate suggested that long position traders were paying short traders to maintain their positions, while ETH’s taker buy/sell ratio turned green, indicating buying sentiment among derivatives investors.

Finally, AMBCrypto’s analysis of CFGI.io’s data suggested that ETH’s fear and greed index was in a “fear” position. Whenever this metric hits this level, it indicates chances of a bullish trend reversal.

However, if the bearish trend persists, investors might soon see ETH test its $2.4k support. An unsuccessful test could push the token further down to hit the $2.3k price point in the following days.

The above is the detailed content of Ethereum Classic (ETC) Tumbles 10% in 24 Hours, Can It Recover?. For more information, please follow other related articles on the PHP Chinese website!