- Ethereum (ETH) and Ethereum Classic (ETC) saw price surges.
- The price of both crypto assets shot up over the past few days.
- However, charts indicate a cool down period soon.
Along with Ethereum’s (ETH) current bullrun, it seems that Ethereum Classic (ETC) is also regaining control. Since ETC bottomed in mid-June, the past seven days are showing a strong uptick in price action for the cryptocurrency.
According to some, this surge for both the assets may simply be a temporary celebration. In particular, Ethereum Classic (ETC) is presently showing flashing signs of a possible bearish reversal. That is, in comparison to its latest pump.
In detail, this latest rally began on July 13, 2022 when the price was at the lower end of $13.34. Since then, the price went on an upward surge until it hit a price of $19.92 in a matter of a few hours alone. To highlight, this pump was almost 50%.
At the moment, the charts are indicating many possible signs of a cool down. Specifically, ETC was trading close to a Fibonacci retracement level. This was the same price zone that provided support in the month of May.
Presently, the possibility of a reversal is likely to occur due to the fact that the MFI is entering the overbought zone. In fact, the RSI is also nearing the overbought zone. Meanwhile, the Directional Movement Index’s +DI is registering a strong uptick.
Let’s not forget, the latest round of bullish pressure came from a push that led the price high above the 5-day moving average indicator. This was the first time ETC set this on the charts since April 2022.
Therefore, with ETC’s upward movement, many holders may succumb to sell pressure and choose to cash in their gains. This is already a given considering the several on-chain metrics coming in from supply data held by whales. After all, 0.45% have already taken profits since July 13, 2022.
All in all, investors must always be aware of the possible trigger event of selling pressure that sometimes follows a bull run. It is not a new scenario within the crypto space to see strong selling pressure that lead to significant asset price falls.
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