ETC is eyeing an upswing as bullish momentum builds. Holders of short positions account for 54.6% of market supply, but increased social activity could tip the balance.
Ethereum Classic (ETC) has attracted market attention as its structure suggests potential upward momentum.
Ethereum Classic is showing an encouraging uptrend according to the daily chart, but is currently in a retracement phase.
This pullback to the local support level is a perfect opportunity for the bulls to step in and push the price up again.
Zooming in on the 4-hour chart, we see that ETC is starting to regain bullish momentum, suggesting a possible breakout is near.
Source: Tradingview
Increased social superiority
One of the key indicators supporting this positive outlook is Ethereum Classic’s social dominance. According to the analysis of Santiment data, the social dominance of ETC is currently 2.07% and is steadily increasing.
Social dominance is a key determinant of market sentiment, and its upward trend often correlates with rising prices.
Once ETC starts to gain attention, this activity could theoretically lead to enough upside to drive the price higher.
Source: Santiment
ETC short traders still dominate the market
Interestingly, 54.6% of the Ethereum Classic market is currently controlled by those taking short positions.
Short positions at this high only reveal that many traders are expecting the price to fall. However, if ETC continues to gain further bullish momentum, a short squeeze could occur, pushing the price higher.
Source: Coinglass
ETC Whale on the move
In addition to the positive sentiment mentioned above, there has been a spike in whale activity since October 9th. Currently, 57% of the supply comes from over 5 million whales.
This suggests that the ETC may undergo significant movement if the whale makes any migrations.
Source: Santiment
Read Ethereum Classic (ETC) price prediction for 2024-2025
Ethereum Classic looks likely to witness a rally as social dominance increases and bullish bias is visible on both the daily and 4-hour charts.
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