Ethereum Classic price rejection: Watch these levels for buying opportunities
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Ethereum Classic failed to clear a major price barrier again.
- Price action hinted at unclear market trend in the short term.
Ethereum Classic bulls failed to cross a critical price hurdle at the $23 resistance level. This price level has been a major ceiling for buyers with ETC experiencing significant price retracements in the $23-$24 zone.
Read Ethereum Classic [ETC] Price Prediction 2023-24
The price rejection at this level ushered in a selling wave that took price below the $20.2 support level. As of press time, ETC traded at $19 with bears attempting to break the higher low for more dips. Bitcoin’s [BTC] ranging price movement between $30.2k to $30.7k could aid ETC bears in the short term.
Can bulls recover after another significant price rejection?
A look southward showed bulls exposure to pullbacks at the $23 to $24 price zone. Major tests of this price ceiling in Q1/Q2 2023 led to significant downtrends for ETC.
Bulls had been on a strong rally that had seen three resistance levels flipped to support. However, a look at the price action on the daily timeframe highlighted the strong selling pressure that curtailed the bullish momentum.
If the bearish momentum continues in the short term, bulls can look to the $17.6 support level for a price rebound. This could offer a good risk-to-reward ratio for short-term buyers with potential profit levels at the $20.2 resistance level.
However, this will be hinged on Bitcoin staying above the $30k level. If the king coin dips below $30k, this will invalidate the bullish rebound thesis. This could see a continuation of the bearish trend with a drop to $16.5 within reach.
Meanwhile, the on-chart indicators didn’t offer any clear signals for buyers or sellers. The Relative Strength Index (RSI) hovered around the neutral 50 mark for over a week. On the other hand, the On Balance Volume (OBV) experienced a sharp spike at the start of July but flattened out to highlight easing demand.
How much are 1,10,100 ETCs worth today?
Cautious approach in the futures market
A look at the exchange long/short ratio on Coinglass revealed a cautious approach by market speculators. Shorts and longs were almost matched with shorts holding a slim 50.16% share over longs 49.84% share of all open ETC contracts.
A key element for Ethereum Classic would be BTC’s price action, as this could determine the next clear directional move for ETC.