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?
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
Is your wallet green? Account ETC Profit Calculator
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.
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/