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Ethereum Classic (ETC) Encounters Resistance at $15.60: Traders Consider Short Selling Options
Ethereum Classic (ETC) has been facing ongoing price rejections around the $15.60 level, causing traders to be wary of entering long positions, particularly in light of the liquidation data trends. This analysis examines the current condition of ETC’s price movements and investigates possible trading opportunities in this difficult landscape.
Throughout September, Ethereum Classic has remained confined within a relatively narrow price consolidation range, fluctuating between $15.20 and $12.60. Traders looking for profit opportunities are closely observing the extremes of this range, prepared to take advantage if the range expands further.
In the meantime, Bitcoin (BTC) has encountered difficulties, facing price rejection at $26.4k and retreating to the lower boundary of the range at $25.7k.
The trajectory of ETC seems closely linked to Bitcoin’s fluctuations. If BTC manages to uphold the lower limit of the range and reverses its recent declines, ETC could potentially rise, aiming to surpass the persistent $15.60 resistance. However, this level has consistently proven to be a hurdle, which may limit opportunities if past patterns repeat.
An in-depth analysis of the 4-hour chart indicates that ETC has fluctuated between $15.60 and $15.20 during the first week of September. The ongoing resistance at $15.60 aligns with an invalidated bullish order block (OB) ranging from $15.58 to $16.00 (highlighted in red) on the 12-hour chart, established on August 29th.
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Moreover, the 4-hour 50-EMA (Exponential Moving Average) at $15.5 is positioned below the invalidated bullish OB, indicating that the area above $15.5 may act as a significant bearish zone. As a result, a potential rebound at the lower limit of the range at $15.20 may face resistance once more at the upper boundary of the range.
Traders considering shorting opportunities might look to enter a position at $15.55, with a take-profit target set at $15.20. However, it is crucial to remain alert, as a 4-hour candlestick session closing above $15.70 and a subsequent move above $16.0 would invalidate this shorting strategy.
At the same time, technical indicators suggest a challenging environment. The Chaikin Money Flow (CMF) has declined, crossing below the zero level, indicating a reduction in capital inflows. Additionally, the Relative Strength Index (RSI) has shown a downturn, highlighting increased selling pressure.
Sellers in the ETC market may wish to exercise caution and wait for a potential reversal and rejection at the upper boundary of the range before making any significant decisions.
On the liquidation front, ETC has experienced a spike in long liquidations on the 4-hour timeframe, with over $160k worth of long positions being liquidated compared to minimal shorts, underscoring the prevailing bearish sentiment.
The wider crypto market recorded $25 million in total liquidations in the 4 hours following this analysis. Rekt longs accounted for over $23 million, representing more than 75% of all liquidations, reinforcing a short-term bearish outlook that traders should approach with care.
The post Ethereum Classic (ETC) Faces Resistance at $15.60: Traders Eye Shorting Opportunities appeared first on BitcoinWorld.
