Ethereum Classic (ETC) has been in the clutches of bears as it has dropped by as much as 30% in the last two weeks.
The price of Ethereum Classic is down 30% in the last two weeks
ETC is trading at $27.69 at press time
ETC Recession Opens Opportunities for Short-Term Positions
ETC has dipped below the $33.9 zone just two weeks ago and it looks like Bitcoin is suffering the same fate as it failed to break above the key resistance of $19.7k. Selling pressure has been intermittently high in the crypto market.
Coming from the larger Ethereum, ETC is predominantly seen as safe as it is designed to alleviate key issues encountered with the larger or main Ethereum token, especially in line with speed of amplification and fee reduction.
In fact, Ethereum Classic has evolved to become one of the largest and most trusted smart contract platforms as it is considered a valuable long-term investment to bolster and diversify the portfolio.
Ethereum Classic Price Seeing Downside Pressure
According to CoinMarketCapETC price is down 1.01% or trading at $27.69 at press time.
At this point, a bearish block is seen near the $30 level. An 8% rise will invalidate ETC’s bearish outlook.
Traders should wait a while for the price to rise before entering any short positions in the $27-$29 range, which is considerably close to $30.54, the key support zone.
Chart: TradingView.com
Judging by the daily and 12-hour time frame, ETC is looking predominantly bearish with waves of lower highs and lower lows seen over the past two weeks.
With that in mind, ETC traders can trade in sync with this trend and wait for any short opportunities.
The RSI of Ethereum Classic is below the 50 zone, which has also been reviewed as resistance.
Therefore, the RSI represents a downtrend. OBV also validates that sellers are dominating the market with lower highs seen for about three weeks so far, suggesting high volume selling.
With this trend, ETC short sellers can take profits somewhere along the key $26.9 and $24.5 support levels. Now a break above the $30.7 zone can trigger a stop-loss order.
Inactive ETC social metrics as of August 2022
Ethereum Classic had its lowest points in July, especially in terms of social metrics, which are higher compared to the September figures. Apparently, ETC’s social metrics such as engagement have dropped since August, which also caused a price drop.
On the other hand, the spike in Ethereum Classic development activities in August has improved the social metrics for ETC. Despite the price drop, ETC is recovering in terms of social dominance, which is a good starting point.
The drop in ETC is said to be due to the bleeding of BTC, as the king of cryptocurrencies wallows under the key resistance of $19.7.
In order to recover, Bitcoin will have to rise above the $20.7k zone and then trade it favorably to a support zone. From a technical point of view, the vertigo of ETC is opening up opportunities for short-term positions.
Total ETC Market Cap at $3.8 Billion on Daily Chart | Source: TradingView.com Forkast Featured Image, Chart: TradingView.com
This post Ethereum Classic (ETC) Sheds 30% Over Last 2 Weeks – More Pain Ahead?
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