Ethereum Classic: Short traders could benefit if this support fails to hold

1 year ago 111

Disclaimer: The accusation presented does not represent financial, investment, trading, oregon different types of proposal and is solely the writer’s opinion

  • ETC terms correction could interruption beneath $18.28 and settee astatine $17.60.
  • A breakout supra the bearish bid artifact astatine $19.18 would invalidate the bias.
  • ETC saw a flimsy diminution successful request successful the futures market.

Ethereum Classic [ETC)] rallied connected 4 January, pursuing Bitcoin’s [BTC] rally connected the aforesaid day. ETC roseate from $15.88 to $19.86, but a bearish bid artifact astatine $19.86 undermined the further rally and forced a terms correction.

The correction followed BTC’s pullback from the $16.95K precocious reached connected 4 January. At property time, ETC was trading astatine $18.51 aft retesting erstwhile enactment astatine $18.28.

Although ETC was highly bullish connected the 12-hour chart, it had reached the overbought portion and could spot further terms reversal (downtrend). Such a determination could supply traders with further opportunities to merchantability astatine these levels.

Read Ethereum Classic’s [ETC] Price Prediction 2023-24

Support astatine $18.28: Can the bears interruption beneath it?

Source: ETC/USDT connected TradingView

All 3 method indicators (RSI, MFI, and OBV) constituent to a further downtrend. The Relative Strength Index (RSI) pulled backmost from overbought territory, a motion of easing buying pressure.

Similarly, the Money Flow Index (MFI) had reached the overbought country and was moving down. This shows that accumulation peaked and organisation was underway. In addition, the on-balance measurement (OBV) has fallen sharply, truthful buying unit whitethorn beryllium limited.

These changes would springiness bears much country to propulsion ETC prices down. Therefore, ETC could interruption beneath $18.28 and settee astatine $17.60. Short traders tin merchantability precocious and bargain backmost if ETC reaches $17.60.

However, a bullish BTC could propulsion ETC to interruption the bearish bid artifact astatine $19.18. Such a determination would invalidate the bearish bias above.

ETC saw a diminution successful unfastened involvement and trading volume

ETC experienced a divergence betwixt unfastened involvement (OI) and terms connected 3 January, which was followed by an upswing successful terms connected 4 January.

However, astatine property time, unfastened involvement (OI) fell arsenic ETC prices fell, indicating a diminution successful unfastened trading positions successful the derivatives market. This bearish outlook successful the derivatives marketplace could enactment downward unit connected the terms of ETC if it continues.

In addition, accrued antagonistic sentiment and a flimsy diminution successful trading volumes, arsenic indicated by Santiment, could undermine further buying unit and springiness much leverage to sellers. 

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Nevertheless, a bullish BTC volition boost ETC to flooded the bearish bid block, hence worthy tracking. 

Source: Santiment

Ser Suzuki Shillsalot has 8 years of acquisition moving arsenic a Senior Investigative writer astatine The SpamBot Times. He completed a two-hour people successful journalism from a fashionable YouTube video and was 1 of the fewer to springiness it a affirmative rating. Shillsalot's writings chiefly absorption connected shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is simply a flimsy anticipation the illustration pic is AI-generated. You see, this relationship is chiefly utilized by our freelancer writers and they privation to stay anonymous. Wait, are they Satoshi? :/

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