Ethereum Classic price sprouts again as $546 million in trading volume comes in

Ethereum Classic price is out of the red after collecting liquidity from the support between $22.00 and $23.00. Before this support area, the original Ethereum blockchain token sustained declines in the wake of its rejection from resistance slightly below $27.00. ETC now exchanges hands at $23.82 ahead of the American session on Thursday.

Can surging trading volumes help sustain an Ethereum Classic price rally?

Investors pushed for lower prices following Ethereum Classic price rejection from $27.00. The same investors will likely have entered new long positions slightly above support at $22.20, thereby lifting ETC to an intraday high at $24.86.

CoinMarketCap reveals a 46.65% increase in the trading volume from all the tracked exchanges. Over the last 24 hours, $546 million in volume has been traded and is likely to increase during the American session.

According to the On Balance Volume (OBV) indicator, Ethereum Classic’s move to $24.86 was mainly supported by a positive volume. However, with resistance solidifying around $24.21 – a confluence level formed by the 50-day Exponential Moving Average (EMA) (in red) and the 100-day EMA (in blue), the volume could flip negative thanks to investors locking in gains.

ETCUSD four-hour chart

Ethereum price printed a falling wedge pattern, as illustrated in the chart above. This pattern is highly bullish. It usually marks the end of a downtrend or continuation of an uptrend, like in ETC’s case.

A break above the wedge’s upper trend line confirmed a 6.04% bullish swing that saw Ethereum Classic price tag $24.86. As you may see, this target equals the distance between the widest points of the pattern, extrapolated above the asset’s breakout point.

Although Ethereum Classic price has already hit its breakout target, the Moving Average Convergence Divergence (MACD) has presented a buy signal. Movement of the MACD toward the mean line (0.00) and hopefully above it will confirm another swing north, where bulls will battle resistance at $27.00 for a continued breakout above $30.00.

Bullish traders must wait for Ethereum Classic price to make a clean break beyond the confluence resistance before triggering their long positions. At the same time, failure to break above the same level could confirm potentially profitable short positions to ETC’s support between $22.00 and $23.00.