Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Ethereum Classic faltered at the range-high leading to a 7.5% price drop.
- This took ETC toward the range-low with sellers looking to take advantage.
Ethereum Classic’s [ETC] short-term prospects for a bullish rally failed to scale the $16 resistance hurdle. This resulted in a 7.5% dip that took ETC toward the $14.46 support level.
Read Ethereum Classic’s [ETC] Price Prediction 2023-24
An earlier technical analysis by AMBCrypto on 6 October highlighted the dominance of sellers, as the massive re-entry of bears swiftly cut off the preceding bullish rally.
Meanwhile, Bitcoin [BTC] continued to hold onto the $28k price zone, as the king coin looked to consolidate its short-term gains.
Is another bounce off the range-low possible?
Ethereum Classic has traded within a compact range since mid-August. The $16 resistance level has served as the range high while the $14.46 support level has been the range low.
Despite a few break-outs as evidenced by the price action on 29 August and 2 October, ETC has largely traded within the abovementioned range. This has seen the altcoin maintain its bearish structure with bulls unable to initiate a sustained price reversal.
While the On Balance Volume (OBV) highlighted the consistent trading activity for ETC on the higher timeframes, the Relative Strength Index (RSI) sank below the neutral 50. As of press time, it was headed to the oversold zone – a sign of significant selling pressure.
However, bulls have precedence at the $14.46 support level, as price has bounced off the level thrice in the past. Another rebound off the level will offer buyers an 8.5% profit margin to the $16 range-high.
On the other hand, if the buying support at the level has weakened considerably, sellers could take advantage to break below the level with $13 firmly in sight.
How much are 1,10,100 ETCs worth today?
Sellers look to exert control
The futures market data showed a significant leaning toward a short-term bearish bias. This was evidenced by the 52.27% share of the open contracts held by shorts over the four-hour timeframe.
With price hovering over the key support level, a candle close below the level on the higher timeframes could offer aggressive sellers a shorting opportunity to the $13 price zone.