Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
Since March 17 Ethereum classic [ETC] fluctuated between $19 and $22.26. In recent days, price action consolidated just below the channel’s mid-level of $20.66, breaking out only after Bitcoin [BTC] exceeded $30K.
But the ETC reached a price cap of $22.26 and returned to the midpoint of its range.
Read Ethereum classic [ETC] Price prediction 2023-24
Will the $20.66 midpoint of the range prevent the plunge?
Source: ETC/USDT on TradingView
At the time of writing, the value of ETC was $20.93, down 0.93% but with more than 100% increased trading volume in the last 24 hours, according to Coinmarketcap. The Relative Strength Index (RSI) had dropped to the neutral line – the price could go either way. In addition, the Average Directional Index (ADX) was on a downward trend, demonstrating a weakening market structure.
On the other hand, the Money Flow Index (MFI) pulled out of the overbought zone – an outflow of money from the ETC market, but the outflows have slowed down at the time of writing. Ergo, near-term ETC bulls could defend the channel’s $20.66 midpoint if BTC doesn’t fall below $30,000. However, the $21.49 hurdle must be passed to retest the $22.26 upper limit.
Conversely, ETC could break the $22.06 support, especially if BTC drops below $30,000. But the plunge could slow down at $20 or the channel’s lower limit of $19. These levels could serve as a short position for sell targets in such a downswing scenario.
ETC saw more liquidations of long positions
Source: Coinglass
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According to Coinglass, ETC funding rates have remained relatively positive in recent days — a bullish sentiment that could lead to a rebound at the channel’s $20.66 midpoint.
However, there have been more liquidations of long positions than short positions in the past 24 hours. According to Coin analysistotaled more than $1 million in liquidations and lost long positions worth more than $980,000 in the same period.
Short positions accounted for about $280,000 in total liquidations, showing that longs paid short positions – a bearish outlook that could give short sellers more clout. The market structure requires caution and investors should monitor BTC’s price action before taking any action.
Source: Coinglass
This post ETC Drops to Midrange – Are Short Seller Profits Limited?
was published first on https://ambcrypto.com/etc-drops-to-its-mid-range-level-are-short-sellers-gains-limited/
