ETC’s bullish rally cut short — will sellers stop at nothing?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Selling pressure saw bears quickly reclaim the $16 resistance level.
- Buyers suffered massive liquidations due to sharp price drops.
Ethereum Classic [ETC] began October with a bang, extending its late September rally to claim the $16 price level. However, jubilant bulls had their victory party cut short, as sellers hit back with a 9% price drop to recover the $16 price level.
How much are 1,10,100 ETCs worth today?
A preceding price analysis of ETC on 2 October highlighted the possibility of more benefits for buyers if Bitcoin [BTC] didn’t post immediate losses. Although BTC maintained the $27k price zone, ETC bulls were caught out by the sharp re-entry of bears into the market.
Sellers halt bullish gains
Looking at the price chart indicators on the 12-hour timeframe showed a bearish bias. The Relative Strength Index (RSI) dropped sharply out of the overbought zone and dipped under neutral 50. This denoted a spike in selling pressure.
Likewise, the Chaikin Money Flow (CMF) flipped negative to highlight significant capital outflows over the period under consideration.
Riding the short-term bearish wave, the next target for sellers would be a 7% move to the $14.45 support level. If sellers lose momentum, bulls can keep prices in a range before making another attempt to flip the $16 price level.
Sharp price drop led to significant losses for bulls
The pushback from sellers resulted in significant losses for longs in the futures market. According to liquidation data over the past 12 hours, longs accounted for 98% of the total liquidations. This amounted to $109.25k worth of closed long positions.
Read Ethereum Classic’s [ETC] Price Prediction 2023-24
Bearish speculators quickly reacted by increasing their short positions with sellers dominating the long/short ratio by a 51.24% (shorts) to 48.76% (longs) margin.