Summary: Ethereum Classic soars 17% – What’s fueling ETC’s 6-month high?

Ethereum Classic Defies Odds: A Risky Ascent? Ethereum Classic (ETC) recently surged over 17% to a 6-month high of $25.59. This rally was driven by a capital influx, with trading volume skyrocketing 290% to over $1 billion and its market cap reaching $3.9 billion. ETC defied broader market corrections, fueled by a strong return of buyers, evident in consistent spot buy volumes. However, this ascent is met with skepticism in the derivatives market. Despite the price surge, Open Interest and Derivatives Volume indicate betting against ETC's rally. Short positions dominate the Long-Short Ratio (0.97), signaling bearish sentiment from some investors. Adding to the caution, an uptick in Exchange Netflow suggests aggressive profit-taking by long-term holders, historically preceding declines. Technical indicators like Stochastic RSI and RSI are both in overbought territory. While confirming strong buying pressure, these levels also signal volatility and potential correction. The question for ETC investors is whether current buyer strength can overcome growing short interest and profit-taking to reach $29. Conversely, buyer exhaustion could trigger a sharp pullback towards the $20.80 mark. ETC's journey ahead remains a precarious balance between continued upward momentum and an impending price adjustment.