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ETC drops to its mid-range level – Are short-sellers’ gains limited?

2min Read

Ethereum Classic [ETC] dropped to a neutral level of $20.66. However, its short-term price action remains unclear and may only take a cue from BTC’s movement.

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Since 17 March, Ethereum Classic [ETC] has been oscillating between $19 and $22.26. In the past few days, the price action consolidated narrowly below the channel’s mid-level of $20.66, only breaking out after Bitcoin [BTC] crossed $30K.

But the ETC hit a price ceiling at $22.26 and retraced to its range’s mid-point. 

Read Ethereum Classic [ETC] Price Prediction 2023-24

Will the range’s mid-point of $20.66 prevent the plunge?

Source: ETC/USDT on TradingView

At press time, ETC’s value was $20.93, down by 0.93% but with an increased trading volume of over 100% in the past 24 hours, according to Coinmarketcap. The Relative Strength Index (RSI) had dropped to the neutral line – the price could go in either direction.  In addition, the Average Directional Index (ADX) had a downtick, showing a weakening market structure. 

On the other hand, the Money Flow Index (MFI) retreated from the overbought zone – an outflow of money from the ETC market, but the outflows were easing at press time. Ergo, ETC near-term bulls could defend the channel’s mid-point of $20.66 if BTC doesn’t fall below $30K. However, the hurdle at $21.49 must be cleared for a retest of the range’s upper boundary of $22.26 to occur. 

Conversely, ETC could breach the $22.06 support, especially if BTC falls below $30K. But the plunge could slow at $20 or the channel’s lower boundary of $19. These levels could act as shorting selling targets in such a downswing scenario. 

ETC saw more liquidations of long positions

Source: Coinglass

Is your portfolio green? Check ETC Profit Calculator

According to Coinglass, ETC’s funding rates have remained relatively positive in the past few days – a bullish sentiment that could lead to a rebound at the channel’s mid-point of $20.66. 

However, there have been more liquidations of long positions than short positions in the past 24 hours. According to Coinalyze, there were more than $1M in total liquidations, and long positions worth over $980K were wrecked in the same period. 

Short positions accounted for about $280K of total liquidations, showing longs were paying shorts – a bearish outlook that could give short-sellers more leverage. The market structure calls for caution, and investors should track BTC price action before making moves. 

Source: Coinglass


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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