Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Ethereum Classic traded within a range. Range highs and range lows could be key in the coming days.
Bitcoin continued to consolidate around the $23,000 area. While bullish, a dip towards $22.4k cannot be ruled out. Ethereum Classic also has a bullish bias in a higher time frame. Yet only three levels mattered in the short term.
Read the Ethereum Classic price prediction for 2023-24
Bulls and bears skirmished at the limits of the range and a breakout to $26 had not yet been initiated for ETC. Once this happens, bulls can look to buy a retest of the range highs. In the meantime, traders can look for opportunities within the range.
The midpoint of the range meant that R:R was the worst at this point
Source: ETC/USDT on TradingView
Ethereum Classic traded within a range of $20 to $23.88, with the midpoint at $21.94. Highlighted in orange, these are the three levels that have been important over the past two weeks. Shorter time frame traders can look at a long visit to the lows of the range and a short test of the highs of the range.
How much are 1, 10, 100 ETC worth today?
Sometimes trading and analysis can be extremely simple, and this was one of those times. While Ethereum Classic has a bullish bias in a higher time frame, the price action over the past two weeks has indicated consolidation. We can’t yet be sure of a breakout past $24 or a reversal below $20.
The 4-hour RSI was at neutral 50 and the CMF at zero. Neither indicator showed any favors for the bulls or the bears as ETC was trading in the mid-range at the time of writing. Taking a position, long or short, at this level can be risky without significant momentum and volume on the lower time frames, such as 1 hour or less.
Falling OI and CVD emphasized bearish sentiment
Source: Coinalyse
On the daily time frame, ETC flipped the market structure to bullish after breaking above the low at $16.75. It surged above $18.45 on Jan. 4 and retested at the same level as support a day later. Therefore, despite the two-week range it is currently trading in, the bias would remain bullish until ETC dips back below $19.5.
Meanwhile, the futures market saw a drop in Open Interest. This has been a regular feature for the past ten days. Even as ETC bounced off the lows at $20 on Jan. 19, OI failed to make major gains. This indicated weak bulls, and the next step could be emboldened bears. An increase in OI alongside a decline below $20 could precede a turn to bearish dominance.
On January 24, ETC fell from $22.42 to $20.56 within a 4-hour trading session. Long positions worth $1.7 million were liquidated during this session. At the time of writing, the bulls were struggling with the $21.94 level. The long positions that are liquidated can be followed by a rise back to the range highs.
This post Should Ethereum Classic bulls wait for a dip to range lows?
was published first on https://ambcrypto.com/should-ethereum-classic-bulls-wait-for-a-dip-to-the-range-lows/
