- Ethereum Classic price has reinitiated its rally after holding support at $32.
- Investors believe that ETC has a lot of room for growth before a significant reversal occurs.
- Ethereum Classic price needs to crack resistance at $40 to pave the way for another gigantic leap north.
Ethereum Classic price appears to be going against the grain of widespread market sentiment that it is primed for a significant correction by rising 6.5% in the last 24 hours. The bullish trend began on June 18 but took a breather on July 29. As reported last week, miners moving from Ethereum to Ethereum Classic ahead of the former’s transition from the proof-of-work (PoW) to a proof-of-stake (PoS) consensus, aka ‘the merge’ were the primary drivers of the rally.
To a great extent, Ethereum Classic price depends on the merge to keep the rally going, but the real question stands: Is the momentum sustainable? The token’s technical outlook is solid now, especially with support at $32 confirmed. On the upside, buyers are likely to channel their efforts to break the resistance at $40, a move likely to shape the subsequent recovery phase.
ETC/USD daily chart
Ethereum Classic price rally may be unstoppable
The daily Moving Average Convergence Divergence (MACD) crossed into the positive region on July 18, sending a bullish signal. As this upside movement continued, ETC eased through barriers such as $18, $24 and $30. Ethereum Classic will close the gap at $40 and make headway above the same level if this bullish outlook holds.
GloverFx agrees that Ethereum Classic price has not yet exhausted its rally. Via a Twitter post, the analyst pointed out a bullish reversal signal from the TD Sequential indicator. Moreover, ETH tested the downtrend line on the 1-hour Relative Strength Index (RSI)). Further analysis of the index showed that the price and the RSI had formed a bullish divergence on the 30-minute chart.
ETC/USD 30-min chart
Ethereum Classic’s Weighted Sentiment on-chain metric from Santiment has printed a bullish picture, as seen in the chart below. The metric combines positive and negative commentary surrounding ETC and multiplies the result with the total social volume.
 [14.27.55, 03 Aug, 2022]-637951249447409060.png)
Ethereum Classic Weighted Sentiment
Readings below the mean line indicate that the token is bullish. In other words, investors believe Ethereum Classic price is in a buy zone and are likely to buy for long-term holding rather than short-term speculation.
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