Ethereum News Today: Ethereum Classic Surges 17.27% to 6-Month High on High Trading Volume

Ethereum Classic (ETC) experienced a significant surge, rising by 17.27% to reach a 6-month high of $25.59 before slightly retracing to $24.8. This surge was accompanied by a substantial increase in trading volume, which surpassed $1 billion, marking a 290% increase. The altcoin’s market cap also reached $3.9 billion for the first time in six months, indicating a significant capital inflow into the cryptocurrency.

Despite the broader market correction, Ethereum Classic has shown resilience and increased demand. On July 18th, ETC recorded a Spot Buy Volume of 3.57 million, compared to a Sell Volume of 3.08 million. This pattern continued on July 19th, with a Buy Volume of 685k compared to a Sell Volume of 623k. As a result, the Spot market recorded two consecutive days of positive Buy-Sell Delta, at 492k and 61k, respectively.

While buyers rushed into the market, strategic positions were also taken, awaiting the next move. Ethereum Classic’s Open Interest (OI) jumped by 28.2% to $313 million, while Derivatives Volume Soared 213.5% to $2.43 billion. This surge in OI and Volume signals growing participation in the Futures market and high capital flow as new positions open. However, despite the price uptick, more investors are opening short positions than long positions, with the Long Short Ratio sitting around 0.97.

As ETC rallied, so did the appetite to realize profit. Exchange Netflow soared to $10.37 million, then dropped to $1.28 by press time. This massive uptick in Exchange Netflow suggests that investors who have been underwater for the past six months are aggressively cashing out. Historically, such investor behavior has preceded price decline as downward pressure on prices mounts.

According to analysis, Ethereum Classic held strong despite market volatility as buyers flowed into the market to accumulate. As a result, the altcoin’s Stochastic RSI surged to 100, indicating an overbought condition. Likewise, the Relative Strength Index (RSI) surged to 86, also reaching an overbought level. When these momentum indicators both reach overbought levels, they confirm a higher buying pressure but also warn of increased volatility. Despite this, if buyers continue to accumulate, Ethereum Classic is likely to regain its upward momentum and target $29. However, if momentum fades due to buyer exhaustion, a pullback to $20.80 is likely.