Is Ethereum Classic ripe for extra shorting gains?
Ethereum Classic hit a key support but faced overhead hurdles, which could provide re-entry for short positions.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ETC chalked a descending triangle pattern – a bearish formation.
- The confluence of a hurdle and the 50% Fib level could derail a price surge beyond $18.
Ethereum Classic [ETC] fluctuated between $14 and $16 in the past few weeks. ETC sellers pushed the altcoin to a bearish target and multi-month support of $14.7. The move translated to +10% shorting gains when traced from a previous lower high of $16.89.
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AMBCryto’s price analysis of ETC on 6 October evaluated how bears quickly overwhelmed bullish momentum at the $16 level. The bearish takeover saw ETC extend its decline to $14.7 support with no solid bullish intervention at press time.
Will sellers double down?
The Relative Strength Index (RSI) was negative and highlighted selling pressure intensified. However, the capital inflows wavered, as illustrated by the stagnated Chaikin Money Flow (CMF) at zero.
Despite the bearish pressure at the time of writing, ETC retraced to a key $14.7 support that has stopped extra price drops since December 2022.
An attempted bullish reversal could be derailed at the overhead confluence of the trendline resistance and the 50% Fib level (near $17) or $16.
Such a scenario could provide two possible short set-ups. Aggressive players could seek re-entry at the confluence area of $17, while conservatives focus on $16. The $14.7 support will be take-profit targets in each scenario.
A move above the roadblock of $17.0 – $18.71(red) and $16 will invalidate the above short set-ups.
Key liquidity exists at these levels
How much are 1,10,100 ETCs worth today?
Based on the Coinglass daily Liquidation map, ETC had liquidity levels at $14.6, $15.2, $15.6, and $16.4. The $14.6 had already been hit by press time, and $15.2 could be next. So, the altcoin could bounce slightly upwards, driven by a liquidity hunt.
But BTC struggled to defend the $27k at the time of writing. Any extra BTC losses could encourage ETC sellers to devalue the altcoin further. So, tracking BTC is crucial for optimized setups.
