ETC’s range formation reveals this as the bulls look to move forward
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Ethereum Classic favors a bullish bias in the coming days even as it flashed early signs of bearish momentum
- The retest of the mid-range level would be critical in determining the direction of the next move
Ethereum Classic [ETC] traded within a range since late August. This range extended from $14.4 in the south to $17.2 in the north. At the time of writing, the mid-range mark was a key level where a pivot could occur.
Read Ethereum Classic’s [ETC] Price Prediction 2023-24
A technical analysis report of ETC by AMBCrypto highlighted the same range a week ago, except the price was close to the lows at that time. We witnessed a bounce as noted in the report, and traders could see another hike in prices.
A revisit to the $15.8 pocket could see the bulls regain their mojo
The four-hour market structure was technically bearish, provided the reading was considerably aggressive. A more lenient approach showed that ETC needed a move below $15.68 to shift the structure bearishly.
The Relative Strength Index (RSI) was at 45 and its move below neutral 50 in recent hours was a sign of a potential shift in the direction of the market. Yet the On-Balance-Volume (OBV) did not fall by a notable distance.
Hence, the RSI’s signal could be premature. A buying opportunity was likely to arise at the $15.8 mark targeting the range high at $17.2. This idea would be invalidated if ETC prices fall below the $15.55-$15.5 region.
Data revealed short positions stand to lose massively in the event of a trend reversal
The Cumulative Liq Levels Delta was considerably red. It was a sign that short liquidations far outweighed long ones, hinting at a possible upward liquidity hunt. To the south, the $15.65 level had close to $2 million in long liquidations. Such a dip could convince more retail traders that ETC was primed for a large move to the range lows.
Realistic or not, here’s ETC’s market cap in BTC’s terms
Yet, given the Delta, a move northward would clear out much of the built-up liquidity around the $17 vicinity. There were multiple levels above $16 which would force long liquidations worth more than $1.5 million. A retest of the $16.8-$17.3 region could cause significant pain for bears who failed to book profits on the recent dip.