Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Ethereum Classic favors a bullish bias in the coming days, even as it showed the first signs of bearish momentum
- Retesting the mid-level would be critical in determining the direction of the next move
Ethereum classic [ETC] traded within a certain bandwidth since the end of August. This range extended from $14.4 in the South to $17.2 in the North. At the time of writing, the mid-range was a key level at which a pivot could occur.
Read Ethereum Classic’s [ETC] Price forecast 2023-24
A technical analysis report of ETC by AMBCrypto highlighted the same range a week ago, except the price was near the lows at the time. We witnessed an upswing, as mentioned in the report, and traders could see a new increase in prices.
A visit to the $15.8 pocket could see the bulls get their mojo back
Source: ETC/USDT on TradingView
The four-hour market structure was technically bearish, provided the index was quite aggressive. A milder approach showed that ETC needed a move below $15.68 to shift the structure bearishly.
The Relative Strength Index (RSI) stood at 45 and its move below the neutral 50 level in recent hours was a sign of a possible shift in the market’s direction. However, the On-Balance Volume (OBV) did not decrease significantly.
The RSI signal could therefore be premature. A buying opportunity would likely arise around $15.8, targeting the range high of $17.2. This idea would be nullified if ETC prices fell below the $15.55-$15.5 region.
Data shows that short positions can lose enormously in the event of a trend reversal
Source: Hyblok
The Cumulative Liq Levels Delta was significantly red. It was a sign that short liquidations easily outweighed long ones, indicating a possible upside liquidity chase. In the South, the $15.65 level saw nearly $2 million in extended liquidations. Such a dip could convince more retail traders that ETC was poised for a big move to the range lows.
Realistic or not, here is ETC’s market cap in BTC terms
But given the Delta, a move north would remove much of the built-up liquidity around the $17 zone. There were multiple levels above $16, which would force long liquidations worth more than $1.5 million. A retest of the $16.8-$17.3 region could cause significant pain for bears who failed to make gains during the recent dip.
