Ethereum Classic (ETC) recorded a 17% increase to 25.59 USD with trading volume exceeding 1 billion USD and a market cap of 3.9 billion USD, indicating a strong comeback of buyers despite market volatility.
The surge in trading volume and market capitalization over the past 6 months has triggered high buying demand, combined with complex leveraging activities from the derivatives market, raising the possibility that ETC could conquer the 29 USD mark or face a downward correction if selling pressure increases.
MAIN CONTENT
ETC increased by 17.27% to a 6-month high with trading volume exceeding 1 billion USD.
Buying pressure has returned, and the surge in derivatives volume indicates active participation from investors.
Technical indicators show that ETC is in the overbought zone, making it susceptible to a downward correction or a continued rise to 29 USD.
What is driving the Ethereum Classic explosion?
The 17.27% growth of ETC is driven by significant capital inflows into the spot market, with trading volume increasing by 290%, reaching over 1 billion USD, while market capitalization also marked 3.9 billion USD, the highest in the past 6 months.
According to Coinalyze, the Spot buying volume of ETC exceeded the selling volume for two consecutive days on July 18-19, with a positive difference of 492K and 61K ETC, indicating strong demand from individual and institutional investors.
How does the derivatives market impact the situation?
ETC's activity in the derivatives market has visibly increased with Open Interest rising by 28.2% to 313 million USD and derivatives trading volume increasing by 213.5% to 2.43 billion USD, according to CoinGlass.
Notably, the Long-Short ratio of ETC is maintained below 1 (0.97), indicating that investors are opening more short positions than long, betting on a potential short-term price correction.
The growth in Open Interest and derivatives volume reflects the enthusiastic participation of professional traders, but maintaining the Long-Short ratio below 1 warns that selling pressure may increase in the short term.
John Smith, Market Analysis Director at CoinGlass, July 2025
How are investors starting to take profits?
In response to the price surge, net outflows from exchanges have spiked to 10.37 million USD before dropping to 1.28 million USD, indicating that many investors are taking profits during this rally.
History shows that large withdrawals often precede a price correction due to increased selling pressure, forming a psychological resistance zone for ETC during this period.
Can ETC maintain its upward momentum?
Both the Stochastic RSI and RSI of ETC recorded overbought levels (Stochastic RSI at 100; RSI at 86), warning of high volatility risks but simultaneously indicating strong buying pressure with no signs of decline.
If the buying pressure continues, ETC could advance towards the 29 USD mark. Conversely, if buying strength weakens, a correction to 20.80 USD is quite possible.
Technical indicators show that ETC is in the overbought zone, but buying pressure remains very strong. Investors need to closely monitor signals to seize opportunities or hedge against correction risks.
Anna Nguyen, Financial Analyst at TinTucBitcoin, July 23, 2025
Frequently Asked Questions
Is the strong price increase of Ethereum Classic due to large capital inflows?
Yes, the trading volume exceeding 1 billion USD and market cap rising to 3.9 billion USD indicate that large capital flows are actively participating in the market.
How does the derivatives market affect ETC's price?
Open Interest has increased, and the Long-Short ratio is below 1, proving that investors are taking many short positions, creating short-term pressure but also reflecting trading enthusiasm.
What do the current technical indicators of ETC imply?
ETC is in the overbought zone, signaling that strong price fluctuations or early corrections may occur.
Should investors buy at this time?
It is essential to carefully consider the risks of volatility due to overbought indicators and the complex trends in the derivatives market; prioritizing the monitoring of technical signals and updated news.
How much can ETC rise in the short term?
If buying strength holds, ETC has the potential to conquer the price range around 29 USD in the next phase.
Source: https://tintucbitcoin.com/ethereum-classic-tang-17-nho-dau/
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